All Forum Posts by: Zack Karp

@Luke Rorech yes, since a 203K is a FHA loan, the loan limits are the same :)

@Aaron Garbade no different than applying for a Conventional loan.  Happy to help if you don't have a great lender/LO that specializes in working with real estate investors.  Feel free to reach out if you need any help.

@Aaron Garbade let me shed some clarity for you...

Conventional max financing: 15% down for a 2-unit, 20% down for a 3-4 unit

Conventional max loan amount in Tampa: 2-unit $702,000, 3-unit $848,500, 4-unit $1,054,500

FHA max financing: 3.5% down for 2-4 unit

FHA max loan amount in Tampa: 2-unit $456,275, 3-unit $551,500, 4-unit $685,400

The max loan limits will be increasing SIGNIFICANTLY for 2022, if you're not in a hurry.

Best of luck!

@Sung Yu what city/state is the property located?  The regular Conventional loan limit for a 4-unit is $1,054,500.  You might be getting bad info.

@Sam Slivinski yes.  The question is, how much.  You can use secondary/bonus entitlement.  You'll need to pull your COE and then calculate the remaining amount with $0 down.  You can also exceed that amount with a down payment.

Best bet is to check with your lender/LO who knows what they are doing with VA loans and entitlement.

TYFYS and best of luck!

@William Rushton echoing what most here have said.

For any primary residence loan (Conventional, FHA, or VA), you need to have the ability to occupy 1 of the units within 60 days of closing. Period.

However, here is what can be different from lender to lender...

For example, we will allow a signed letter from one of the existing tenants, stating that they are terminating the lease early and vacating.  Many lenders do not allow that.

So ultimately, it is up to your specific lender on what they will (or will not) allow, and if they are truly helping you to find a solution.  As @John Warren nailed it above, 99% of lenders/LO's truly aren't the right partner when it comes to real estate investing.  Working with that 1% sometimes can make or break your success.

Best of luck!

@John Warren smart man, that's exactly what I told her :)

@Samuel Roberts I am a Military Mortgage BootCamp instructor (fancy way of saying that I teach VA lending). And licensed in IN. The income guidelines vary between Conventional, FHA, and VA lending. So it depends what type of loan you need. Sounds like there's more to the story than just DoD & Reservist pay. If you want to connect with your specific scenario, I'll shoot you straight, whether you like the answer or not.

TYFYS and best of luck!

@Amanda Jones the short answer is no.  Not a 500K duplex.  But a 300K 2-unit or a 500K 4-unit?  Possibly.

The long answer is that the max you can be approved for depends on the rest of your credit/debt.  The max that you will be able to qualify for depends on the combination of the purchase price, property tax, and the rental income from the other unit(s) that you are not occupying, in addition to your employment income, and debt.  This calculation is called your debt-to-income ratio, which will be the driving factor on how much you can be approved for.

The first thing you should do is to get preapproved, then you will know exactly where you stand.

Best of luck!

@Seth M. said.

You have to be in title for 6 months to do a Conventional cash out refi. Delayed Financing won't work in this situation. You can close this refi in December doing a Conventional cash out refi at 80% LTV (as long as you can prove this will be your primary residence, if investment property then you can do 75% LTV).

And actually, you DO NOT need to be in the property at the time of the refi in order to do it as a primary residence loan.  You have up to 60 days after closing to occupy the property.  But you need to be able to prove that it will be your primary.  This is where working with the right LO can make all the difference. :)

Best of luck!