All Forum Posts by: Stephanie Medellin

@Jacob G.  Are you asking for a mortgage late fee or tenant late fee?  Typically a mortgage will allow a 15 day grace period before a late fee is charged.  After 30 days it will be reported as late to the credit bureaus.

@Daniel Ditto  I think this is probably a wait and see scenario.  If the economy is trending down and lending guidelines tighten, it's hard to know how those guidelines will change, or what changes will be necessary.  You can probably expect lower appraised values, the need for more cash, stronger credit, more reserves.  Those are some basic ways to prepare in any economy.

The original post said the property has two separate deeds.  A 1-4 unit property would only have one deed.  

It sounds like two individual single family or 1 unit homes that are attached, not a 2-unit home.  

@Bryan Terry  With conventional or government financing, you would need two separate loans if they are two separate properties.  There are many properties that are semi-detached (that's another term that could be used to describe two connected houses).  Just as you would need 2 loans to buy 2 condos that are in the same complex, even if they were right next door, you would need 2 loans in this scenario.

Owner financing or a loan from a friend is a different story; you can make any terms you want.  One loan could be recorded against two parcels. 

Blanket loans can also cover more than one property, but they are harder to find and will be more expensive than 2 conventional loans.

@Eric Bunratty  This really sounds like an investment property to me if all 4 units are to be rented.   

@Sam Stout  Conventional loan guidelines allow up to 10 financed properties.  With 7-10 financed properties, he will need a 720 credit score, and adequate reserves.  If he doesn't meet that criteria there are other programs with reduced reserves and lower credit requirements.  Is he already on title to the house?

@Richie Thomas  Lenders like lending home will still want to appraise the property, and will have other criteria you and the property will need to meet.  This is completely different from being a true cash buyer, with cash in your account, where you make offers and make all the decisions on whether to buy.  Representing yourself as a cash buyer would be misleading. 

@Juan Martinez  As already mentioned, a 2nd mortgage for the remaining amount of the down payment is the best way to go.  A personal loan doesn't give you as much protection, you want to get some type of collateral.  If there is a lien on the house for that amount, they are less likely to default on paying you back.  Just make sure you're complying with any lending rules regarding balloon payments, especially if it's going to be occupied by the new owner as their primary residence.  

Per CFBP (Consumer Financial Protection Bureau): 

The Closing Disclosure has a statement that reads "Your loan has a demand feature," which is checked "yes" or "no." A demand feature permits the lender to require early repayment of the loan.

If the demand feature is checked "yes," the lender can require that you immediately pay the entire loan balance (principal and interest) at any time. The lender can make this demand on you for any reason or for no reason.

@Scott Yarnall  Yes, assets can be used for some loan types, especially if you have enough assets to repay the loan in full, but just choose to finance 50%.