All Forum Posts by: Stephanie P.
Stephanie P. has started 186 posts and replied 4622 times.
Post: What state should you choose a bank to cash out refi
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
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If you're going conventional, either find a local to you broker that's licensed in Ohio or find a local credit union in Cleveland, but they may not work with you because you're out of state. If you use a DSCR loan, location of the broker won't matter because the ultimate lender won't care. The broker that hires the appraisal management company that hires the appraiser is going to use local appraisers.
Find a good mortgage broker that can help you.
Post: Qualifying for a Cash Out Refi ?
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
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Quote from @Joshua Carter:
Hey folks! Big time fan of the community, first time posting here.
I'm hoping to purchase my first investment property by the end of the year and hope to implement the BRRRR strategy. I am looking for insight/advice about qualifying for a cash out refinance loan. I have a pretty nice nest egg of cash available that I plan to buy and rehab a property with (approx. $100k), however I'm curious/concerned I won't qualify for the refi loan. As it stands, I only make $50k/yr. but am also considering leaving my current w-2 job and going back to being self employed in the trades as I've done in the past.
Does anyone have insight around what I'll need to qualify for the refi loan in general, and if a recent career change will be hurt my approval odds? Or any general tips given the situation Ive laid out in? I just purchased my first home 2 years ago, so I'm pretty novice to the whole loan process in general. I'm doing my best to do my due diligence before I start making big moves.
Thanks in advance!
Use your nest egg to buy a smallish property for cash. Then move in. Then do a DSCR loan to refinance the current property (up to 75% loan to value). Your personal income or employment doesn't come into play and the market rents set by the appraisal's comparable rent schedule will be the income for the property. Even if it's vacant, you'll be able to get 70% loan to value. The key is that you don't live there anymore because they are for non-owner occupied only. You won't qualify for owner occupied if you leave your W2 job unless you get a bank statement loan and most of those are for self-employed borrowers.
Post: Cash out refinance shopping - NY state
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
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Quote from @Lauritz M.:
Hello!
Thank you for such a great community and active forum!
I have gotten an offer from a lender on a refinance. I am fairly new to this and this is my first refinance. It would be a residential investment property loan, not LLC and not primary residence. High personal income and credit score.
The terms are 3 yr ARM @ 7.00% rate, 0,75% points and 80% LTV. The property value is around 175k.
1) Is this good, bad or average in todays lending climate? I am especially thinking about the 7% rate, I have heard rumors that it's still possible to obtain 6%-ers.
2) Any tips or referrals for lenders who can outperform this offer? Must be able to operate in the state of New York.
Please and thank you.
That's a great rate in this environment.
Post: What is DSCR Lender Really Looking For On My Bank Statements?
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
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Quote from @Burt L.:
It seems the thread has taken a turn that I don't understand and didn't intend.
When I say that the cash I get to take out at the time of refi covers the required 6 months reserves a couple of times over - 6 mos reserves is approx $30K and I can easily take cash out $100K on appraised ARV value of $1.0 M on total rehab loan/purchase loan of $540K at 70% LTV. All the lenders I have spoken to so far have said I can use the cash out for the 6 months reserves. I am more asking about having little other funds left and the same DSCR lenders to date have all wanted to have bank statements despite being a property based loan with a 705 FICO mid-score; good, not great.
That is more my question- am I DOA because of little other cash on hand and what else are they seeking to find on the bank statements? I really thought a lack of financial documents is why people use DSCR loans in the first place.
Many documents tell stories about the borrowers. Bank statements can tell whether the borrower is bouncing checks or if they're thin on cash. The DSCR lender you're with is looking for NSF's and reserves and since CASH OUT CAN BE USED FOR RESERVES for many DSCR borrowers you need to be submitted by the broker to one of them. Once there, if you're getting that much cash out, you should be fine if you're not bouncing checks.
To go a little deeper, many DSCR lenders only care about the mortgage history on the subject property and your primary residence so unless your credit report shows that you don't pay your mortgages on other properties, you should be fine there too.
Post: 2 Units, Lender Insists 1 Lease
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
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If the property isn't zoned for more than one unit, they would require one lease. If it's zoned for multi family, then you would be okay.
I think you've got a property that's not conforming to zoning and it doesn't matter whether it's conventional financing or non-qm, it won't get done without the appraiser writing that it's "legal non-conforming" and then you'll need a rebuild letter from planning and zoning.
Post: Rockstar mortgage broker
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
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Here I am @Nicholas Hofmann, a rock star mortgage broker.:)
Post: How to Get a Real Rate Lock on a DSCR Loan?
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
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Quote from @Burt L.:
I"ve been shopping a DSCR and hearing odd things about rate locks.
So far I've been told things such as I can lock "when I"m close to closing" or "after the appraisal is completed". The appraisal is supposed to be the slowest part of the process.
I'm sure rates will not be down from those quoted up-front. Years ago I saw a line item on one of my settlement statements for a Yield Spread Premium, which I don't believe are legal anymore. There wasn't much question what had happned there.
How can I get the actual rate I'm quoted at the time of commiting to the loan?
Thank you BP nation.
BTW, yield spread premiums are alive and well and very legal. They're used primarily to offset closing costs for borrowers that are tight on cash to close.
Post: DSCR lenders with good track records that work in philly market
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
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Quote from @Paul Defngin:
Quote from @Elliot Hendler:
Hey, I have a SF that is rented, for 1100 a month, with 102,500 pay off to my hard money lender and should appraise for around 160-170k im looking to get out of my hard money loan and into a 30 year fixed, and looking to make a relationship with a lender that does DSCR loans in the area.
Any recommendations or introductions would be greatly appreciated.
Keep checking around, maybe someone will be able to do it. Good luck.
It's all a math problem right @Paul Defngin:)
Post: Trying to ask lenders the right questions
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
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Quote from @Keith Blakeney:
Have appt to talk w lenders tomorrow. Seeking 1st investment. Heard on a BP podcast that a duplex could be used as my primary res while renting another side as long as i stay for 1yr I would be able to roll out and purchase another to start building a portfolio. It seemed in the podcast that these loans can be had w lower % down payments. What is the vehicle/strategy called that i can bring up to lender so that I an getting correct info and so that i can research?
Im trying to figure out how to ask the right questions to get real answers. Thank you
Use FHA for house hacking multi family properties.
It's the program with the least down payment required (again, for multi-family properties)
Post: Are realtors likely to help new investors seek out private loans?
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
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Quote from @Sam Bhattacharya:
I am looking to expand my rental property portfolio. I would like to use the help of private lenders to do this.
Is it common in the industry for realtors to help you find a private lender? Or is this something investors are expected to do themselves and bring to the table even before they begin?
Usually it's the other way around. If a private lender or portfolio lender comes across a well qualified borrower, they'll introduce them to a Realtor that they have closed loans with to see if they have anything suitable for their borrower.