All Forum Posts by: Clarence Johnson

Albert will Benfed and BECU do $ standalone heloc for a duplex at a high LTV as you mentioned they would for single fam res?

@Albert Bui good point re the underwriter guidelines and the possibility of risking the buyers deposit.  I never released the loan contingency for the 4 unit I just sold for that reason.  I always try to keep a parachute.

Also a good point re the FHA second use but what is the plan B you referenced?

@Terence Michael nice to meet you as well.  Send me an email if you need more info one Inglewood rents.  The recent selling prices for multifamily property, lack of rent control, and increased demand will push the rents considerably higher for early 2017.  Nothing will be fully verifiable until late Jan-Early Feb, but investors cannot buy at these prices ($645k duplex, 2/1 and 3/1) and rent for the going rates of $1400 and $1800.

@Greg D. In Ca as long as you have not release contingencies you do not need a "big reason" to withdraw your offer.  Also, make that you hire your own independent inspector.  You also probably have a finance contingency which should allow you to withdraw your offer without penalty within a certain time period.  Is there anything that would prevent you from qualifying for the loan, job change, car purchase etc???

@Albert Bui I am aware of the self sufficiency rule but underwriters do not always apply it or they are not aware of it. 

@Ryan Hurd very good post and thanks for clarifying that you can in fact have more than one FHA loan at a time. If you buy multifamily you can use the FHA loan on single Family a years after. I just closed a 4 unit for my client in West LA and with seller concessions and closing credit he paid about $40k total for down payment and closing to close a building with a $1,065,000 purchase price.

@Zachary M. Get approved and then find the property.  Only use 203k fund to make properties finance-able that otherwise would not be.  I advise not to use them for aesthetic repairs.

@Account Closed Definitely sacrifice for the year. FHA has a one year owner occupant requirement but if you look up the rule there a several grey areas that would allow you to vacate prior to the year. Also, if you don't default the chances of someone knocking on your door to do an occupancy check is slim.

@Chris 

@Chris Mason does your company so stand alone HELOCS? If so, what whats the max LTV for a owner occupied duplex.

Hey Terrence,

Inglewood and some of the adjacent areas of LA are booming.  I also like the area near the San Pedro waterfront.  While San Pedro does have rent control, the remodel of Ports O Call will definitely increase the desirability of the area.  Any other out of state areas catch you eye?

Laura,

Just so your aware you can make that multifamily purchase (2-4 units) using a FHA loan with 3.5% down, and later purchase a single family using a 3-5% conventional loan. That extra 15% down won't do anything amazing in regards to lowering your payments. You will be required to pay mortgage insurance but in the right market a few years of mtg insurance is considerably less than an additional 16.5% downpayment. I purchased my duplex in Inglewood using FHA and suggest it for my multifamily clients, especially if they have long term plans to build a RE portfolio. Don't be discouraged by the Inglewood market, it is tight but using strategic offers you can beat investors. Also, there is a corridor of Los Angeles adjacent to Inglewood in the 90047 zip code that I particularly like and in close proximity to the Inglewood stadium development. Also, pay attention to the areas surrounding the Exposition and Crenshaw metro lines.

Welcome Laura,

I'm a Realtor/Investor that lives in Inglewood as well.  Let me know if you have any questions or need any insight.  I think that Time question regarding the type of property you desire is very important, also there are several types of conventional loans, does yours require 3, 5, or 20 percent down?