All Forum Posts by: Upen Patel

@Libby Tucker Your mortgage banker is not serving you. FHA will not give you a loan on a property that needs rehab. If it does not need rehab, but rather just some cosmetic work, then FHA will NOT give you an addition loan for that. FHA 203(k) is a purchase loan for properties that need work. You can't "add" 203(k) after the purchase.

@Wayne Brooks is spot on regarding pre-approvals. To many mortgage bankers are happy to give out a pre-approval without truly wetting the borrower. With a pre-approval they are hoping to get you hooked, but they are off the hook with all the disclaimers listed on the pre-approval.

Its not likely that this purchase is going to go through for you. Sorry to be the bearer of bad news.

Find a mortgage banker that is honest and not just focused on the bottom line. That way when you identify the next property, you will know what you are truly qualified for.

Upen Patel
Mortgage Banker

Federal NMLS# 1374243

0 Votes

@Randall Brooks Thank you for your service.

Both VA and FHA loans allow you to buy 1-4 unit properties as long as you intend to live in one of the units. Both require that you have landlord experience (at least 2 yrs with tax return evidence) to count the rent towards income. Even if you meet that requirement, the units have to be rented (already occupied or signed lease to start after closing) to use future rent as income.

Not saying it can't be done, but VA and FHA has strict requirements that all lenders have to follow. Don't let a lender tell you that they can do something that the agencies will not allow. It will just be a rude awakening later in the loan process.

You can also your conventional loan to buy a multi-unit. It all comes down to your financials, how much you have for down payment and how much monthly you are looking to keep it at. A good Mortgage Banker should be able to help you analyse your options.

Good luck.

Upen Patel
Mortgage Banker
Federal NMLS# 1374243

0 Votes

@Kevin McDonald If you bought your property with cash then you can get Delayed Financing. The financing will be based on the purchase price/appraisal. If you want to get a new appraisal then you will have to wait for 6 months.

Good luck.

Upen Patel
Mortgage Banker

1 Vote

Originally posted by @Bryan O.:

Hi @Upen Patel. Thanks for joining the discussion. So if you refinance out, then you can use your full entitlement again, but if you want to keep the VA loan on the first, then you need to have reasoning to use the remaining entitlement in the same area? I assume that means things like moving for work, family size grew, etc.

That is correct. The file has to be send to the local VA loan center for pre-approval. VA loans are for primary homes, so they don't folks to use it as an investment vehicle. If the reason is valid then they usually approve.

Another aspect to keep in mind is that you don't have to free up the entitlement if you have left over entitlement and the VA gives you an approval. The benefit is that VA will allow you to use the rental income to of set the mortgage payment (even if you are not a qualified landlord). And you can use VA IRRRL refi on the investment in the future (assuming it passes IRRRL requirements).

Hope this is helpful.

1 Vote

@Bryan O. You can refinance the property away from your VA loan to restore your entitlement. The issue comes when you want to keep the VA loan and have a life even to get approval from VA for a 2nd loan within the area.

Upen Patel
Mortgage Banker

0 Votes

Georgia Real Estate Q&A Discussion Forum

Post: Atlanta Investor friendly banks

Upen Patel

Posted August 24, 2015 11:57

Lender
Nationwide Lender
Posts 1,841
Votes 801

@Mark Graziano Unless you have a few hundred though with a bank, your primary bank relation is not going to affect your mortgage banker relationship. What you should do is build a relationship with a mortgage banker who you can trust and who will work with you in the long run to give you sound advise.

Upen Patel
Mortgage Banker

0 Votes

Private Lending & Conventional Mortgage Advice

Post: How Can I Win a Bid on Fourplex with FHA Financing?

Upen Patel

Posted August 21, 2015 20:28

Lender
Nationwide Lender
Posts 1,841
Votes 801

Originally posted by @Charlie Fitzgerald:

You won't be able to get a "Full Approval" without an appraisal...and depending on your bidders deposit requirements, your risking that cash if for whatever reason, you can't borrow the balance due in time. Be careful. This is a slippery slope way to acquire a property.

Charlie

Charlie, one of the conditions on a Fully Approved loan is that the appraisal comes in above the loan amount and the title is clean. Its NOT a slippery slope, as long as the buyer is bidding on a property at the right price. If the buyer is bidding $200K for a $150K property, then not getting the loan approved are the least of their worries.

Upen Patel

0 Votes

Private Lending & Conventional Mortgage Advice

Post: Refi mortgage from private lender

Upen Patel

Posted August 21, 2015 19:47

Lender
Nationwide Lender
Posts 1,841
Votes 801

@Erin N. Not sure where you are getting the 18 month seasoning requirement? There is a 6 month seasoning requirement if you have traditional financing or if you want to do the loan with a new appraisal.

If its has been at least 6 months since you bought the property, then you should be able to get a 70-75% LTV residential conventional loan with the new appraised value. Being that you have the property in an LLC might complicate things. LLC loans are commercial loans. You will have better luck if you move the property out of the LLC, refinance it and then move it back into the LLC.

Good luck.

Upen Patel
Mortgage Banker

0 Votes

Private Lending & Conventional Mortgage Advice

Post: How Can I Win a Bid on Fourplex with FHA Financing?

Upen Patel

Posted August 21, 2015 19:39

Lender
Nationwide Lender
Posts 1,841
Votes 801

@Lakila Richardson When competing with cash offers, the closest you can come with a mortgage loan is a Fully Approved Loan. This is where you go through full underwriting review and approval. So your loan is as good as approved with a few conditions.

Find a banker that can get you a Fully Approved letter, not just a Pre-Approved letter.

Good luck.

Upen Patel
Mortgage Banker

1 Vote

All Forum Posts by: Upen Patel

Upen Patel has started 49 posts and replied 1720 times.

Post: The 5 financed property restriction

Post: 6% return for downpayment for NYC triplex under contract?

Post: FHA Tri/Quadplex Lenders?

Post: own property for 6 months to get cash out 30 yr mortgage?

Post: Advanced Investing with VA Loan - What is the Reality?

Post: Advanced Investing with VA Loan - What is the Reality?

Post: Atlanta Investor friendly banks

Post: How Can I Win a Bid on Fourplex with FHA Financing?

Post: Refi mortgage from private lender

Post: How Can I Win a Bid on Fourplex with FHA Financing?

Upen Patel has started 49 posts and replied 1720 times.

Biggerpockets Logo Post: The 5 financed property restriction

Biggerpockets Logo Post: 6% return for downpayment for NYC triplex under contract?

Biggerpockets Logo Post: FHA Tri/Quadplex Lenders?

Biggerpockets Logo Post: own property for 6 months to get cash out 30 yr mortgage?

Biggerpockets Logo Post: Advanced Investing with VA Loan - What is the Reality?

Biggerpockets Logo Post: Advanced Investing with VA Loan - What is the Reality?

Biggerpockets Logo Post: Atlanta Investor friendly banks

Biggerpockets Logo Post: How Can I Win a Bid on Fourplex with FHA Financing?

Biggerpockets Logo Post: Refi mortgage from private lender

Biggerpockets Logo Post: How Can I Win a Bid on Fourplex with FHA Financing?

Post: The 5 financed property restriction

Post: 6% return for downpayment for NYC triplex under contract?

Post: FHA Tri/Quadplex Lenders?

Post: own property for 6 months to get cash out 30 yr mortgage?

Post: Advanced Investing with VA Loan - What is the Reality?

Post: Advanced Investing with VA Loan - What is the Reality?

Post: Atlanta Investor friendly banks

Post: How Can I Win a Bid on Fourplex with FHA Financing?

Post: Refi mortgage from private lender

Post: How Can I Win a Bid on Fourplex with FHA Financing?