All Forum Posts by: Shaun Weekes
Shaun Weekes has started 33 posts and replied 1673 times.
Post: Is 65% LTV the new norm?
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
- Posts 1,784
- Votes 757
Originally posted by @Edward Brown:
I just got off the phone with my lender to refi my new property. The loan officer let me know that I would have to bring cash to the closing table because they are only lending at 65% LTV. Has anyone else been getting similar feedback from lenders? Any recommendations on good lenders?
What is your scenario? If it's a 2 to 4-unit investment property and you're looking for cash out before 6 months, then 65% is the max Fannie and Freddie will lend under the delayed financing rule. If it's after 6 months you're looking at 70% LTV. Go ahead and give us some more detailed info and you'll get the answers you need.
I hope this helps and have a good one.
Post: Buying rental property as 2nd home to pay 10% down (3+ times!)
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
- Posts 1,784
- Votes 757
Originally posted by @David Samuelson:
I recently bought an investment property with a vacation property loan, 4% 30 year fixed with 10% down. My broker couldn't get me a 2nd vacation property loan, so I found a new broker who was willing to get me another vacation property loan, I just had to write a letter stating the other property was converted to an investment property and was no longer a vacation property. So I then purchased my second investment property, again, with a vacation property loan, 3.625% 30 year fixed with 10% down. Now my new (2nd) broker can't do another vacation property loan.
Question. What if I just use another broker. Technically, my other properties are no longer vacation properties, they're 100% investment properties, so I should be able to purchase a new vacation property.
Other then lying about the intent of use for my vacation properties, is there anything illegal with this strategy? All my friends have turned their vacation properties into short-term rentals so it seems this is a pretty common thing.
This is mortgage fraud and you're looking at 5 years in federal prison and a 250K fine. It's not worth it and posting this in a public forum is really not that smart.
Post: Cash out refinance FHA?
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
- Posts 1,784
- Votes 757
Originally posted by @Angel Garibay:
@Shaun Weekes
I would have to raise the cash for the renovation weather it be hard or private money. The renovations differ in every property in every area, some would need only about 20-30 for about 100 in equity and some 50-60 for 200 and some 100-120 for 300.
I really want to be able to utilize the equity after the rehab for other business opportunities. So that is a major focal point in this whole strategy.
If you want to raise the cash it will take longer but you won't have to pay for labor which is huge. I would start looking up how to go about raising funds and then go from there. Unfortunately, that's not my area of expertise so I can't comment on that too much.
Good luck and just keep learning and you will get to where you need to be.
Post: Cash out refinance FHA?
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
- Posts 1,784
- Votes 757
@Angel Garibay
Depending on the condition of the home and your rehab budget FHA 203k could be a great option. If you have the cash for the Reno and you wait 6 months you can refinance using new appraised value. I wouldn't recommend a HELOC unless you plan on paying it back within 12 months.
How much do have for the reno?
Post: Refinance duplex or not?
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
- Posts 1,784
- Votes 757
@Ashley Kisselman
If you're using the cash to buy and hold a cash out refinance will be cheaper in the long run. If you're using the BRRRR strategy and you plan on paying back the HELOC within 12 months then that's the way to go. Although a HELOC has little to no cost it's an interest only payment and will fluctuate based on the prime rate. A cash out refinance means that you'll be paying more money each month but at least you know that the dollar amount will never change.
Are you looking to buy and hold or BRRRR?
Post: cash out refinance a cash flowing property
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
- Posts 1,784
- Votes 757
Originally posted by @Michael Pempin:
Originally posted by @Shaun Weekes:
Originally posted by @Michael Pempin:
Does anyone have experience refinancing a rental property to cash out refi a cash flowing property, only to turn it into a non cash flowing property after increasing loan amount from cash out?
property as follows:
currently 13 years into a 30 year mortgage (17 years remaining). piti 1550/month. loan amount 180k. 3.75% interest rate.
Looking at option to cash out refi and pay 11k in points to bring it to 2.75% 15 year loan with 85k cash out. new loan amount 290k. piti would be 2250
current rent = 2250
looking for cash to pay down a few small debts and have downpayment for another property to be purchased in 6-12 months.
do have option to sell as well while still relative peak prices, but will cost roughly 50k in taxes + commissions and fees. would net roughly 200k from sale.
does it make sense to cash out refi in this scenario or sell in a vacuum?
Paying 11K in points is extreme. Depending on the current value you can get around the same rate and pay off some additional debt which will lower your total outgoing payments. It sounds like your home is worth roughly 450K so at 60% LTV you'll be able to get a loan for approximately 270K. Get a 30-year fixed and pay the 15 yr. payment if you really want to go that route.
You have options which is great.
I hope this helps and have a good one.
thanks for response. Yes home is worth roughly 450k at the moment. Do people actually go back to 30 year terms when only 15/17 years left on mortgage? Seems like with amortization it was finally starting to work in my favor (paying more principal each month than interest).
11k seems extreme to me as well, but if i plan on holding 15 years and paying off the note, the 11k would be worth it after about 36 months (as opposed to paying no points and 4.5% for 15 years).
Just remember that you can control how much you pay every month. If you lose income or something negative happens you still need to pay that 15 yr. note. You can also get a note that is 17 years if you wanted to as this is something that has come to the market in the last couple of years. A specific loan term that is.
You'll be fine with whatever you do I just see that 11K in fees as a waste when you can pay whatever you want on a monthly basis.
Take care and have a good one.
Post: Best option for Cash out refinance
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
- Posts 1,784
- Votes 757
Originally posted by @Dillon Marshall:
Cash out refinance with pulling cash out. Or Cash out refinance with a home equity line of credit
What are you using the cash for? If it's for buying an investment property with the BRRRR method and you'll be done in 12 months or less a HELOC makes more sense since there's little to know cost fee wise. If you're using the cash and paying it back after 12 months a cash out refinance is a better option. A good example would be a buy and hold scenario with no rehab. Yes, there will be fees, but you'll be paying down the principal as opposed to an interest only payment for the first 10 years.
I hope this helps and have a good one.
Post: cash out refinance a cash flowing property
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
- Posts 1,784
- Votes 757
Originally posted by @Michael Pempin:
Does anyone have experience refinancing a rental property to cash out refi a cash flowing property, only to turn it into a non cash flowing property after increasing loan amount from cash out?
property as follows:
currently 13 years into a 30 year mortgage (17 years remaining). piti 1550/month. loan amount 180k. 3.75% interest rate.
Looking at option to cash out refi and pay 11k in points to bring it to 2.75% 15 year loan with 85k cash out. new loan amount 290k. piti would be 2250
current rent = 2250
looking for cash to pay down a few small debts and have downpayment for another property to be purchased in 6-12 months.
do have option to sell as well while still relative peak prices, but will cost roughly 50k in taxes + commissions and fees. would net roughly 200k from sale.
does it make sense to cash out refi in this scenario or sell in a vacuum?
Paying 11K in points is extreme. Depending on the current value you can get around the same rate and pay off some additional debt which will lower your total outgoing payments. It sounds like your home is worth roughly 450K so at 60% LTV you'll be able to get a loan for approximately 270K. Get a 30-year fixed and pay the 15 yr. payment if you really want to go that route.
You have options which is great.
I hope this helps and have a good one.
Post: Refinancing my home
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
- Posts 1,784
- Votes 757
Originally posted by @Christopher Aguilera:
Originally posted by @Shaun Weekes:
@Christopher Aguilera
What type of loan is this? Conventional, FHA or VA?
It's a conventional loan.
Do you know what your total fees are less taxes and insurance?
Post: Refinancing my home
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
- Posts 1,784
- Votes 757
@Christopher Aguilera
What type of loan is this? Conventional, FHA or VA?