All Forum Posts by: Stephanie Medellin

The marketplace is where you can connect with lenders.

@William Coet  No, 100k in equity in another property is not counted the same as 100k in cash.  If you need to showreserves, equity left in a property cannot be counted as reserves.  Only if you pull the cash out through refinancing will that equity be considered, but then you'd have to qualify with that additional loan payment.

@Leon Lee  It's possible your lender changed THEIR OWN guidelines on this and they no longer allow rental income from the other units to count, but fannie mae guidelines have NOT changed.  You can still include 75% of the rent to help qualify.

https://www.fanniemae.com/content/guide/selling/b3/3.1/08.html

@Enkhmanlai Enkhbaatar Don't forget that DTI calculations will also include your new housing payment too. So if the max is 50%, that would only leave you $300 toward housing ($1200 + $300 = $1500) and $3000 x 50% = $1500. FHA will go a little higher, but probably not enough to make a significant difference. Your best bet is to either pay down most of your debt, or add a co-borrower who makes a good income and has good credit.

If this is for an investment property that will have rental income, and the $1200 already includes your primary housing payment, you have more options.

@Harpreet Singh  She will not be able to qualify conventionally based on the household income, it would have to be her own income.  As others mentioned, she can buy a property under her name with a non-QM loan based on cash flow of the property, and there are lenders that offer 30 year terms. 

@Bj Ayoleke  Yes you can absolutely provide a credit report to get a quote and a general idea of what you can qualify for.  That would be very helpful.  This is great for shopping, but to issue a solid pre-approval, lenders need to pull your credit report to run your loan through automated underwriting.  Without their own credit report, this isn't possible.  Just for shopping and comparison purposes though, just knowing your accurate, middle credit score (not from credit karma or other online provider) is enough to get a quote.

You may also want to check this out regarding conventional loans: 

https://www.fanniemae.com/content/guide/servicing/d1/4.1/02.html

If you want to keep it in your LLC, there are 30 year fixed rate loan terms available to LLCs. They are not conventional loans, so rates will be a bit higher, but you can still avoid an ARM and having to repeatedly refinance.

@Christine Tranchilla Fixed rates are so incredibly low right now, why would you take an ARM?!!! Lock in a low rate now and you won't have to worry about refinancing later.

@Michael Tyler  This time of year will see the highest amounts for tax impounds because taxes are coming due (assuming you're refinancing a property in California).  Either you're going to have to pay the first installment plus a smaller # of months to establish an escrow account, or a high number of months to cover the first installment when due.  If you close in August, your first payment is not until October, so there's only one month to collect before 1/2 the taxes for the year need to be paid.  Still, 11 months is high and I have a feeling that this will probably be adjusted down a little bit.  As for your insurance, usually if the premium is coming due soon, that will just be paid in full at closing, and then a small cushion collected, but maybe it's a few months away.  That would depend on your individual policy.

If you have an impound account on your current loan, remember you will get a refund from your current lender after closing.