All Forum Posts by: Tim Johnson

I have closed about 7 loans for foreign nationals and to be honest they are all different and difficult.

The main issues are always the same:

1. You need money in a US account, the longer the better but 6 months is best and clears a ton of paperwork drama

2. LTV drops big time, most lenders cap out at 65% lTV, so you need 35% down payment- We receive a ton of calls for this and most clients think they can only put 10% down or less. Not happening.

3.  If you don't have a us credit score, they require mortgage history.  This can be extremely difficult to get from your lender in a non US country.  Just had one that took about 2 months to get 12 months of mortgage history from.

4. I have closed them in both personal names and LLC. If you going llc, make sure you get the full documents. Articles organization, LLC docs, and operating agreement.

5. Talk to your lender before, and get a timeline on closing.  Plan on 60 plus days to close.  Most also require a lexus background check, so plan on paying out of pocket about $1200 or so.

Rates are also higher, so don't go in thinking your getting a low 4's rate.  Best I have seen is mid 6's.

If the property is a really good deal, do a DSCR loan, they close quicker and way less paperwork and headaches.

whats the delay about?  Did it take longer to get the appraisals?  Did it take more time to get conditions in?  Generally after they receive the appraisals loans close 10-15 days after even when they are backed up.

What time of deal are we talking about, conventional loan?  Cash out?

Switching to a different lender takes time, generally the quickest closing is about 15 days plus you have an apprasial transfer in your deal.  Sometimes the previous lender will drag the feet on that one.

@Coleman Cox

Sorry I didn't read you breakdown clearly.  I thought you where buying a primary not investment property

1. Check with some local lenders- I'm in Michigan. Some lenders use rent against DTI, you have to live somewhere. You could always do a DSCR loan. Then DTI is not used, the loan is based off the asset and if the property cashflows. Rates are about full point higher in my market.

2. tax and insurance are debt, but most lenders will let you use 75% of rental income to boast your income

A lot of your questions are lender related and area specific.

1.  No rent is not included- you do get a thing called payment shock if you payment goes up more than current rent.  It will trigger a reserve requirement 

2. Depends on what your credit report shows as min payment and when it reports

3. If you have a rental property remember taxes and insurance is in DTI. If you have student loans and not making full payment they will use 1% of balance to calculate DTI- This kills a ton of deals.

4. Most lenders will do 75% of gross, this also depends on time frame.  Some want to see 1 year, others are cool with just a lease.  Talk to some lenders

5. Check with some lenders- some will go up to 57% DTI back-end- This usually helps if you own a current rental.

welcome, I'm also from Grand Rapids.  we have a couple local meetups that have a nice group of people.  I normally just do one on one, or meetups with local investors and realtors that I work with.

scam 100%, no private lenders will lend at 5%.  The rate is too low and no private lender is going to delay payments for the first 6 months.

They have a program for 1-4 units, that allow gifts with no reserve requirement.  Property has to be non owner occupied and requires appraisal with 1007 market rent roll.  Gift funds need to sourced like any down payment funds, so they need 2 months of bank statements from  the gift donor showing the source of the funds.

No income statements or no employment history needed.  Credit needs to over 680 with 20% down payment.

So low down payment you would have to go owner occupied.  Hope that helps

bummer, you would have to prove that he knew about the problem before and covered it up.  Its going to be difficult to prove and cost some money with a lawyer.  I'm not a lawyer and not in your state but it might be worth a phone call and a couple hundreds bucks to see if you have a shot.

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  I had one in the zone, then they voted and changed the zone and its no longer in the zone, UGH  It's like high stakes poker right now, I'm not playing that game anymore.

@Copeland Duhon

You need to talk to some lenders that understand investment deals?  What do you plan to do, fix and flip or buy and hold?