All Forum Posts by: Zach Wain

 Some of our lenders made it effective immediately!  Ask your lender and make a push for it

Today, HUD announced that FHA loans endorsed on 3/20/23 and after will have reduced annual PMI (this is really the monthly PMI people pay on their loans) by roughly 35%. For primary home buyers, this makes FHA loans cheaper and much more competitive with conventional loans. For any investors that want to buy a 2-4 unit property and occupy one of them as a primary home, the FHA product just became that much better.

@Chris Seveney - 0.4% Shelter would be a big win in my book!  Especially when the massive March, April, and July 2022 CPI numbers fall off.  Fingers crossed!

@Ronalyn Recaido - Why do you need the house hacking income to qualify for a loan?  Did a lender review your profile already?

Some people mentioned it, but in order to use a house hack for qualifying income you either need to buy a 2-4 unit property, or a single family/townhome can work if you have a history of border income.  If you do not have a history or border income (house hacking) income on your tax returns, than your options are limited.  2-4 unit homes are a great idea.

Did you try to get pre approved and a lender said you do not have enough income

@Dylan Speer -  100%.  The O.E.R metric for shelter, which is basically 25% of the entire CPI report is an insane metric.  Shelter should start coming down soon on CPI, but in Jan it was 0.7% the same as it was in June 2022 and most of 2022.  I am thinking it starts to come down around April through the rest of 2023.  But, its such a hard thing to quantify because its a random survey of home owners.  

@Dylan Wickersham - the majority of economists believe rates will drop in the next year or two.  Right now, it is challenging to offer good deals that have no discount points.  Rate sheets are structured in a challenging way right now, so there is a lure to have discount points.

I can not speak for that individual mortgage company, but for the majority of mortgage companies that advertise a "no cost" refi in the future, its BS.  When rate sheets normalize, its super common for all lenders to offer no cost refi options.  Its nothing special, you just raise the interest rate 0.25% and cover the closing costs.

Maybe this company is truly going to give a $2k larger lender credit than you would get otherwise, but how would you know that are going to do that?  Your buddy may call the same day to refi that you do and you get the same exact deal that you will get.

Rate structuring is tough right now, look at 2-3 different options they present you with and do the best you can.  I bet $1,000 that you will be refinancing in under 2 years, but that is just my guess.

Ya that rate is legit, and a DSCR loan with a 3-5 yr Prepayment penalty vs a conventional loan, I will take conventional all day. If you can get conventional, do it. When you want to refi in a year or two you will be kicking yourself with a DSCR loan with a heavy PPP.

The good news on the recent conventional LLPA changes (very little good news, but) is they lowered the price hits for 2-4 unit homes going forward.  Conventional should win

@Tyler Gautier - Most construction financing is when you own the land and want to build a new home from the ground up. For an addition, that is likely a cash out refinance or a HELOC. Maybe there is a niche product that someone can offer, but I have not heard of it before. HELOC rates are high, so it depends on how much cash you need to weigh the pro's/con's of a full cash out refi

@Anthony Owens - I know a colleague that runs a Mortgage Broker shop in Virginia, he will be a great resource for you to gameplan and strategize with.  Drop me a line if you need a referral

@Rahnesha White - I am sorry they pushed a rate lock up front fee on you.  There are hundreds of great lenders that do not charge anything up front.  In the future, I would strongly consider using a different lender that does not charge you up front.

You can use a new lender and lose your EMD, but you might lose the $500 in lock fees...

Now that I see this was 14 days ago, I hope everything worked out for you