All Forum Posts by: Stephanie Medellin

@Stephen Spain  From what I can see on Freddie Mac's guidelines, a non-occupant co-borrower is only allowed for 1 unit properties..

http://www.freddiemac.com/singlefamily/factsheets/sell/pdf/home_possible_factsheet.pdf

@Amy Thatcher  As others have mentioned, assuming you qualify for the loan, there should be no reason you can't do a cash out refinance into your name.  You've been on title for years and can show a payment history, and the mortgage is current (12 month payment history is very important). 

@Bruny C.  If the 3 late payments were on mortgages, there isn't really a way around that other than waiting until you have a better 12 month payment history.  It will depend on automated underwriting results.

@Gibran Saliba Yes, typically at least 20%, possibly 25% - 30%.

I think it depends on what type of properties you're looking at.  If they are extremely cheap for the market and in need of gut renovation / total rehab, I would go in with the expectation that everything is going to be fixed anyway.  Why would you need an inspection contingency when you know you have to replace basically everything?  On the other hand, if the properties are in fairly good shape and you're paying close to market value and not really getting a deal, you may want an inspection if you're not expecting too many repairs. 

@Angeline Mentor This is the perfect scenario for an asset based loan - you can hold title in an LLC and your DTI is not a consideration. The property must cash flow based on market rents. There is still a credit check but your other debts will not hurt your chances of purchasing.

Are you concerned about refinancing after the property is repaired?  What kind of condition is the property in now?  

@Josh Smalley  You definitely don't want to proceed with ordering your own appraisal; whichever lender you choose will need to order their own appraisal anyway and you'll be stuck paying for two.  Lenders don't need an appraisal to give you a quote, so you can still compare lenders, but get a quote for a few LTVs - 70%, 75%, etc.

Try to estimate the value as best you can for now. The value does have an impact on the rate (LTV) as well as how much money you'll be able to take out.

@Nicholas Zeiler  Closing costs (excluding the financed upfront mortgage insurance) are $14,844.  The rest is your down payment of $16,000.  So yes total funds needed to close may be about $30,000, but the down payment is not typically considered a "closing cost."

@Nathan Letourneau  It will be easier to do all three at once with the same lender.  You will only have to submit paperwork one time, and they can factor in the new payments all at once.  Rates have improved, too, so it's a good time to refinance.