As a real estate investor, I often have questions about these topics, like the escrow waiver and recasting options. It's good to know that there's some flexibility when it comes to escrow payments, and you can recast your loan at any time if you make a big payment.
Question: there is a property listed just outside of my qualified-for down payment + loan when using a conventional loan. Technically, I can qualify for a larger loan by using an FHA loan because a larger DTI ratio is allowed, and I can therefore qualify to purchase that home with an FHA loan. My question is that if the down payment is a large portion of the total payment, is there a MAXIMUM down payment allowed through the FHA program? I know this isn’t really the intent of the FHA program so a maximum isn’t really advertised, but I’m wondering what the max down payment limit is if there is one?
I was really thankful for the information you provided on DSCR loans. Thanks very much for providing your knowledge and time. Have a Wonderful Weekend!
Amazing job on doing these Monday podcasts. I am looking forward to each of your episodes and give it 5 out 5 stars for content quality and staying on top of most recent developments in RE and mortgage sector !
I am purchasing a property with private money, one of my options to pay back the lender is using a property that I am selling as cross collateralization and pay off that loan when I sell. the other option is to do a 12-month interest-only payment and refinance the property at the end. which one would you recommend I use and why?
This one is pretty niche - I know you can use a VA loan for rentals only if you use it as a primary residence for 1 or 2 years. If you assume a VA loan, does the original lendee's residence time transfer too? I'm seeing some VA assumable listings at around 3% and wondering if it would be a viable investment without actually moving in.
When the question was asked regarding borrowing funds for the down payment you both responded that it could potentially put you over the threshold of debt to income. I thought we were talking about a DSCR product? Debt to income isn’t a qualifier on a DSCR. Correct?
I am a new entrepreneur who wants to invest into Rental Properties. What would you say is the best loan to start out with when wanting to start the Rental property investment journey. Maybe explain the difference with the strategy of living in the house for 1 year then finding tenants to live in the house versus acquiring a rental property following the BRRRR strategy.
Question: I have two properties, both in California, and would like to pull out equity to buy another property to live in. One property is in a trust fully paid off, the other, I currently live in with a really low interest rate, 30 year fixed, conventional. Which property should I pull money from and what method would you recommend using? Thank you, Lauren
Used VA loan twice, the first part is false regarding a “repair.” I bought a 1950’s Arizona home that needed a ton of work, bank & VA appraiser did not care about the problems based off the market value of the house & what I was purchasing it for. This “fear” propaganda of being wary in negotiating with a VA loan hurts veterans getting into homes.
Hello Cali home owners wanting to start our portfolio, the husband and I have about 70k of debt. We currently have a 2.75% APR which is amazing and we love our monthly mortgage payment. However, our home is a fixer upper and we can’t afford any of the major fixes due to our debt. Is it smart sell our primary home, use the equity to get completely out of debt, buy a new primary home with VA loan and buy our first rental with conventional loan.? Also how soon after we buy our primary home with va loan can we use conventional loan for a rental property?. Thanks for all the great info you and your team put out
Thanks so much for all the knowledge. I'm steadily working my way thru all your recordings and really appreciate the lack of "rah-rah" and the abundance of real world negatives that I may put into my pocket of knowledge to look out for...I'm currently purchasing with cash trying to get more negotiating power, then doing a "Delayed Financing" loan. It was explained to me that if after my repairs it appraises for enough value over my purchase I may be reimbursed the entire amount I have invested. The loan must be completed within 6 months of purchase. So far, it looks like I will be able to rent it for what I've listed it for and will recover all my money,so I can repeat the process🎉. Do y'all have any thoughts on pitfalls for this loan type that I have missed (other than the issue of not appraising where it needs to be)?
Hey guys!!!! Thanks for educating and schooling us on Biggerpockets I know we all appreciate it! I have a question for you: my neighbor offered to sell me his home at a price of $450,000 and assume his VA loan of 1.8% (incredible I know). The problem is that the comps I have pulled say the home could be valued at $420,000. We haven’t gotten an appraisal yet but I am wondering if paying $30 k for that interest rate is worth it. I would rent the place for 3k and my mortgage is estimated to be 2k. Thanks so much!
Sure you can rent it.. but when that a/c needs replaced, roof ect your ready for that burden of responsibility. Also tenant issues. 420k home is a very expensive single family rental. With probably more than average upkeep. Only way I personally would do that deal is if I closed the home below comps for future protection of further value decline
So this is an excellent point - I just ran projections on a short term rental. The lender used AIRDNA and the income projections were much greater than the debt service needed (about $5k per month more income than I had projected). They generally want 25% down and charge points upfront and pre-payment penalties. But they are a great tool for the right buyer. Getting what we want comes with a cost unfortunately!
It seems blatantly unfair to buyers that sellers can refuse to accept offers from anyone with an FHA or VA loan without even receiving the offer and reading it. That looks like a way to screen out protected classes from being able to purchase real estate without being held accountable for it in court.
LOVE the direct, transparent information. Too much b.s. out there. Thanks for telling the truth.
Love mortgage Mondays! I am learning new things like the “recast” and more details on the DSCR loans
As a real estate investor, I often have questions about these topics, like the escrow waiver and recasting options. It's good to know that there's some flexibility when it comes to escrow payments, and you can recast your loan at any time if you make a big payment.
Great show!
Clear and direct answers
Question: there is a property listed just outside of my qualified-for down payment + loan when using a conventional loan. Technically, I can qualify for a larger loan by using an FHA loan because a larger DTI ratio is allowed, and I can therefore qualify to purchase that home with an FHA loan. My question is that if the down payment is a large portion of the total payment, is there a MAXIMUM down payment allowed through the FHA program? I know this isn’t really the intent of the FHA program so a maximum isn’t really advertised, but I’m wondering what the max down payment limit is if there is one?
Great question! I would like to know this as well.
I was really thankful for the information you provided on DSCR loans. Thanks very much for providing your knowledge and time. Have a Wonderful Weekend!
Amazing job on doing these Monday podcasts. I am looking forward to each of your episodes and give it 5 out 5 stars for content quality and staying on top of most recent developments in RE and mortgage sector !
OMG this was so good! 🔥
I am purchasing a property with private money, one of my options to pay back the lender is using a property that I am selling as cross collateralization and pay off that loan when I sell.
the other option is to do a 12-month interest-only payment and refinance the property at the end. which one would you recommend I use and why?
This one is pretty niche - I know you can use a VA loan for rentals only if you use it as a primary residence for 1 or 2 years. If you assume a VA loan, does the original lendee's residence time transfer too? I'm seeing some VA assumable listings at around 3% and wondering if it would be a viable investment without actually moving in.
When the question was asked regarding borrowing funds for the down payment you both responded that it could potentially put you over the threshold of debt to income. I thought we were talking about a DSCR product? Debt to income isn’t a qualifier on a DSCR. Correct?
I am a new entrepreneur who wants to invest into Rental Properties. What would you say is the best loan to start out with when wanting to start the Rental property investment journey. Maybe explain the difference with the strategy of living in the house for 1 year then finding tenants to live in the house versus acquiring a rental property following the BRRRR strategy.
Question: I have two properties, both in California, and would like to pull out equity to buy another property to live in. One property is in a trust fully paid off, the other, I currently live in with a really low interest rate, 30 year fixed, conventional. Which property should I pull money from and what method would you recommend using? Thank you, Lauren
Dave you're morphing into Beardy Brandon!
Used VA loan twice, the first part is false regarding a “repair.” I bought a 1950’s Arizona home that needed a ton of work, bank & VA appraiser did not care about the problems based off the market value of the house & what I was purchasing it for. This “fear” propaganda of being wary in negotiating with a VA loan hurts veterans getting into homes.
Hello Cali home owners wanting to start our portfolio, the husband and I have about 70k of debt. We currently have a 2.75% APR which is amazing and we love our monthly mortgage payment. However, our home is a fixer upper and we can’t afford any of the major fixes due to our debt. Is it smart sell our primary home, use the equity to get completely out of debt, buy a new primary home with VA loan and buy our first rental with conventional loan.? Also how soon after we buy our primary home with va loan can we use conventional loan for a rental property?. Thanks for all the great info you and your team put out
Does a HOA have to meet certain financial requirements with a DCSR loan?
There’s mint much content on flipping real estate recently …is flipping not ideal on this real estate market?
Thanks so much for all the knowledge. I'm steadily working my way thru all your recordings and really appreciate the lack of "rah-rah" and the abundance of real world negatives that I may put into my pocket of knowledge to look out for...I'm currently purchasing with cash trying to get more negotiating power, then doing a "Delayed Financing" loan. It was explained to me that if after my repairs it appraises for enough value over my purchase I may be reimbursed the entire amount I have invested. The loan must be completed within 6 months of purchase. So far, it looks like I will be able to rent it for what I've listed it for and will recover all my money,so I can repeat the process🎉. Do y'all have any thoughts on pitfalls for this loan type that I have missed (other than the issue of not appraising where it needs to be)?
Nice!
Can conventional loans be used as a cash-out refinance loan? I am in the rehab process of my first BRRR!
park in a driveway and drive in parkway... David mannn, ur greeeene bruh :D
Hey guys!!!! Thanks for educating and schooling us on Biggerpockets I know we all appreciate it!
I have a question for you: my neighbor offered to sell me his home at a price of $450,000 and assume his VA loan of 1.8% (incredible I know).
The problem is that the comps I have pulled say the home could be valued at $420,000. We haven’t gotten an appraisal yet but I am wondering if paying $30 k for that interest rate is worth it.
I would rent the place for 3k and my mortgage is estimated to be 2k.
Thanks so much!
Sure you can rent it.. but when that a/c needs replaced, roof ect your ready for that burden of responsibility. Also tenant issues. 420k home is a very expensive single family rental. With probably more than average upkeep. Only way I personally would do that deal is if I closed the home below comps for future protection of further value decline
For starters, is investmemt property will cash flow in today's market ?
So this is an excellent point - I just ran projections on a short term rental. The lender used AIRDNA and the income projections were much greater than the debt service needed (about $5k per month more income than I had projected). They generally want 25% down and charge points upfront and pre-payment penalties. But they are a great tool for the right buyer. Getting what we want comes with a cost unfortunately!
But further to your point - yes - this can definitely post a challenge especially on long term rentals.
Why not just get a second home mortgage? 10% down and you don’t have to use it much at all
It seems blatantly unfair to buyers that sellers can refuse to accept offers from anyone with an FHA or VA loan without even receiving the offer and reading it. That looks like a way to screen out protected classes from being able to purchase real estate without being held accountable for it in court.
First 🎉