All Forum Posts by: Stephanie Medellin

@Oscar Hernandez  If you're using hard money to purchase the property, not only due to the condition of the property but also because you've found you can't qualify for a conventional loan, you will have the same qualification issues when you try to refinance.  The income / asset / credit requirements are going to be the same.

There are investor loan programs that don't require tax returns or pay stubs, but they typically have minimum loan amounts and credit requirements.  You will also need enough equity in the property.  I would recommend making sure you can qualify for one of these loans before getting into a hard money loan.  What state are you buying in?

@Chris K. Yes, but rents will still only be based on market rent, not short term rental rates. There are programs that will allow DSCR < 1 (when rental income does not cover the monthly payment).

It sounds like your lender added their own requirements.  Conventional down payment requirements have not changed, but investment property loans have gotten more expensive.  You should still be able to find 20 - 25% down to purchase another.

@Melissa McConnell  You may want to try posting this in the marketplace.

@Matt Duckworth I agree with @Brent Coombs - are you sure you're paying a fair market value for the home?  Just because the seller (as your lender) is not requiring an appraisal, you can always choose to pay for your own appraisal.  You don't have to, of course, if you know it's a great deal, but you do have the option to include an appraisal contingency in your contract as extra protection. 

@Ryan Copeland  You can always ask your current lender how much it would cost to buy down your rate, even if you're already locked.  You will get the pricing from the day you locked, but you do have the option to choose a higher or lower interest rate.

Quicken does have a reputation for quoting low rates with high points, so you always want to find out the real cost behind the rate being offered.  

@Matthew Tyson  Are you looking for a construction loan?

@Russell Beach  That sounds like it could be a headache.  I came across a loan program yesterday that will finance 50% with a 50% seller carryback.  Hard money, very high rates, but essentially no down payment from the buyer needed, leaving your funds for the rehab.  

@Evelina Khaimova  When you receive a loan estimate, in the top right corner it will indicate whether the interest rate is locked, and if locked, the date when the lock will expire.  The lender has 3 days to send you an updated loan estimate after locking your rate.  If you have not received an updated loan estimate, you can assume your rate has not been locked.

@Michael H.  Lenders are slightly more limited in how many investment property loans they can offer.  Some are just raising rates on these, rather than eliminating the loans entirely, so it's definitely still possible.  If you already own the property though, most lenders will want a lease in place rather than 75% of the market rent.