All Forum Posts by: Stephanie Medellin

The clause you mentioned is for brand new construction homes, not renovations, so you should be fine.  

Something else to be aware of - if this is a flip and was completed quickly (less than 90 days), you will need to watch out for the flipping rules with FHA. Your buyer cannot enter into a contract to buy with FHA financing if you purchased the home less than 90 days ago. If you purchased between 91 - 180 and the purchase price has increased significantly, they may require a 2nd appraisal. This doesn't necessarily mean the sale will be more difficult, just that the value must be supported.
  

Hi Kanoa - are you still looking for a loan for your investment property? I can offer cash out refinance without a seasoning period when purchased with cash up to 75% LTV.

Are you a high net worth individual but have a hard time documenting your income?

Experience the ease of home buying or refinancing without the need to qualify with tax returns or prove inconsistent income.

With a post-closing minimum (after down payment and closing costs are paid) of $500k in eligible personal assets, this loan program may be the solution you've been searching for.

Eligible assets may include: 

Checking accounts

Savings accounts

CDs

Money market accounts

Treasury bills

Stocks* 

Bonds*

Mutual funds*

Retirement accounts*

*Starred account types will be discounted to account for fluctuations in value. 

Available for properties throughout the state of California

Contact me for more details! 

Stephanie Medellin

(714) 603-9383

[email protected]

https://instantratequotes.com

This is referring to mortgage insurance, also called PMI, private mortgage insurance. It insures the lender against the borrowing defaulting on the loan. It is paid by the borrower.

Property insurance will always be required in case something happens to the property itself.  Even if a tenant has renter's insurance, the tenant's policy only covers the tenant's personal property.  The landlord always needs insurance to cover the building / home if it's financed. 

Yes, it's standard across most loan types to be able to do a cash out refinance, even if there isn't currently a mortgage on the property.

No reason to think that builders won't agree to cover the buyer's agent fee.  It's a standard cost of doing business for them.

Yes!  Most lenders will gladly talk to you to help you start planning a purchase.  The best thing to do is have a conversation with a broker or lender (or a few brokers or lenders), see who you like working with and get a rough idea of how much you would qualify for based on verbal information.  This is easier for someone who earns a fixed salary, no overtime, no complicated pay structures, not a business owner, etc.   

You can also fill out an application, submit your documents (income, assets, etc), and get pre-approved.  This will allow you to shop for properties more easily, and will also make it easier to run different scenarios for different properties that you view.

The best way to prepare is to have your income for the last two years and YTD available, know how much you have available to spend, and write down any questions you want to ask.  

They should be able to give you a rough idea of an interest rate (of course interest rates change daily) based on estimated credit score, purchase price, down payment amount, location, loan type, property type, etc. 

All of this is necessary before looking at properties because you need to know how much you can borrow, how much you need to put down, and approximately how much you will make from each potential rental.  

Do you absolutely need cash out?  You can potentially qualify for a regular rate & term refinance of the 91k loan (plus closing costs) within 12 months.  

You could also start your transaction ahead of the 12 month mark and plan to close right at the end of the 12 months for a cash out refinance.  You don't have to wait for 12 months to pass to apply for the new loan.  You just can't close before 12 months is up.  You can talk to your new lender to plan your closing around this timeline.

I see a lot of posts mentioning DSCR loans, but if you're buying a primary residence, a DSCR loan cannot be used. DSCR loans are for investment properties only.

For traditional conventional financing, you won't be able to document short term rental income with AirBNB or VRBO reports.  While you could be granted an exception to use a 12-month lease if the property was acquired mid-year, it doesn't sound like you have an annual lease if you rent on a shorter term basis.  

Some lenders will average out a partial year of rental income from your tax returns if you cannot provide a lease.  It will be averaged over 12 months, which will help offset some of the expenses, and may or may not be enough to qualify for another property.  This will depend on the rest of your financial picture.  

Non-QM loans may be an option for you to qualify with short term rental income.  

Conventional loans to purchase (1-4 unit) investment properties don't require a personal financial statement.  The loan application will ask about the assets you need for the purchase (down payment, closing costs, and reserves), and you will need documentation for those accounts (most recent statements).  Your credit report will show your payment history and outstanding liabilities.

Commercial loans may ask for a personal financial statement.