All Forum Posts by: Stephanie Medellin

@Henry Argueta  Awesome news! 

@Henry Argueta  That's understandable, but I don't think you need to worry about approval with these cards.  I believe you have to give a deposit equal to the credit line, so you can't really be denied for a less than perfect credit history.

Discover has a secured card, and it can be converted to a regular card:

https://www.discover.com/credi...

@Henry Argueta  I would go for a secured credit card if no other cards will approve you.  You start with a small limit (sometimes as little as $300) and provide a deposit, but as you use it and pay it back, they will report to the credit bureaus to help boost your score.  Definitely start this ASAP, since it will take some time to develop a good payment history.  Most importantly, be sure to pay on time every month.  You do not want to show ANY negative credit history or late payments after a bankruptcy.  A month or two before you're ready to try for a pre-approval, make sure your balance is only a very small percentage of the credit line for each card.  Even if you pay your balance in full each month, the amount listed on your monthly statement is the balance that will be reported.  If you are actively using your card and getting close to the limit, be sure to make a payment BEFORE the statement closes for the month.  This is also important, because your score will be lower if you use a higher percentage of your credit limit.

@Amber Mena I am not an appraiser, so I'm not sure how they'd handle this. If there are no comps nearby, they can search a 2 mile radius, or sometimes they can go back more than 12 months to see if there were sales more than a year ago. I think the preference is for more recent sales vs more dated sales, especially in a market like this. Comps with ADU's can be difficult to search for - most real estate websites don't allow you to narrow down a search to looks for homes with ADU's. Try asking your real estate agent to look up comps in the MLS. They can easily search the "comments" field for ADUs.

@Henry Argueta What was the outcome of the BK - discharge or dismissal? There is a waiting period for FHA loans of 2 years from discharge. A conventional loan requires a 4 year wait. There are programs that allow no waiting period after a discharge, but you'd need a higher down payment.

@Henry Argueta  What is the red flag that is causing the issue?

@Amber Mena  The best way to estimate the value is to find other comparable sales within a mile that also have ADUs, preferably fully remodeled if you're building new.  That would really be your best indication of value.

@Javier Sanchez Most DSCR (debt service coverage ratio) loans allow you to hold title in an LLC. They do not require tax returns, and are based on the rental income of the property.

@Carlos Cano  The 5% down for multi-units is available on an affordable program called Home Possible.  The issue with Home Possible is the income limits.  They are simply not high enough to allow you to qualify for a 730k property.  There used to be certain census tracts with no income limits on this program, so it worked, but that was discontinued a few years ago.

FHA is really the only option for a low/no down payment on 4 units.

 You can also get a gift from a family member for the down payment.

@Dustin Hedrick  If this property is already being reported on schedule E on your taxes, the rental income will be calculated from Schedule E.  If you purchased it recently and it's not yet on your taxes, then 75% of the lease will be used.  You won't get credit for a higher market rent if the tenants aren't paying that amount yet.  That being said, this doesn't mean you won't qualify for a refinance.  As long as your overall debt to income ratio is sufficient, rental properties can show a loss and you can still be approved.