[HLS]

Concho..
Your post made me LOL. Anyone who wants to buy a condo without substantial income and reserves to hold “forever” *IS* a “wannabe Don Trump” in my book.

In Vegas lingo, rental condos are suckers bets
and there appear to be no shortage of suckers interested in buying them.

Perhaps we need a good old fashioned depression to wake people up and stop playing Monopoly with OPM.

The mindset of millions of people that playing landlord (on a shoestring) is a road to riches is part of the problem, it is not part of the solution.

It’s definitely not as easy to get rental financing today so that is a tiny step in the right direction. It is more difficult to get financing on new construction condos. Until the association is turned over to homeowners and the developer is no longer in control, it can be complicated as well as projects that are not 100% built out.

I can only imagine what the association dues and condition of many complexes will be 30 years from now and it’s not something that I would want to be involved in.

[HLS]

Concho..
Your post made me LOL. Anyone who wants to buy a condo without substantial income and reserves to hold “forever” *IS* a “wannabe Don Trump” in my book.

In Vegas lingo, rental condos are suckers bets
and there appear to be no shortage of suckers interested in buying them.

Perhaps we need a good old fashioned depression to wake people up and stop playing Monopoly with OPM.

The mindset of millions of people that playing landlord (on a shoestring) is a road to riches is part of the problem, it is not part of the solution.

It’s definitely not as easy to get rental financing today so that is a tiny step in the right direction. It is more difficult to get financing on new construction condos. Until the association is turned over to homeowners and the developer is no longer in control, it can be complicated as well as projects that are not 100% built out.

I can only imagine what the association dues and condition of many complexes will be 30 years from now and it’s not something that I would want to be involved in.

[HLS]

In many cases it is possible to get a loan with 30 days on the job in a salaried position in a field that you have been in for 2+ years.

[HLS]

In many cases it is possible to get a loan with 30 days on the job in a salaried position in a field that you have been in for 2+ years.

[HLS]

In many cases it is possible to get a loan with 30 days on the job in a salaried position in a field that you have been in for 2+ years.

[HLS]

In many cases it is possible to get a loan with 30 days on the job in a salaried position in a field that you have been in for 2+ years.

[HLS]

In many cases it is possible to get a loan with 30 days on the job in a salaried position in a field that you have been in for 2+ years.

[HLS]

Fannie/Freddie both offer investment property loans with 20% down/equity IF YOU CAN QUALIFY.
Pricing is better with 25% and slightly better with 40% down/equity. Applies to purchase OR refi.

Today, 5.00% was possible with no points and 25% equity on a 30 year fixed. Loans up to $417,000.

Loan limits/rates are higher on 2 to 4 unit properties.

It gets complicated if you do not have a 2 year history of being a landlord with other properties.
You may have to qualify for the entire payment + taxes, insurance and HOA, without any credit for potential rental income.

On a refi, they look at schedule E of tax returns and add back depreciation to the bottom line to figure the net income/loss.
I don’t think that 75% is used anymore by anyone.
That was several years ago.

You generally need at least 6 months liquid reserves for rental properties. Retirement accounts like PERS that cannot be borrowed against may no longer be used for reserves.

There are way too many restrictions/variables to list. Many people will not qualify without substantial income that will be accepted. Straight salary is easy to verify. Bonus, commission or self employed income can get really complicated.

There is no such thing as an easy loan today.
Even 50% down and loads of cash in the bank and a high credit score doesn’t make it much easier.
There is no one simple mortgage rate that everyone can qualify for.

Rates are close to historic lows but the lowest % of the population in history can qualify for ANY loan today, purchase OR refi, primary or investment.
It is more even difficult to get a loan on condo rentals.

For the lowest rates, banks don’t make up their own rules. F/F make the rules and banks are just mortgage brokers, many do not offer the best rates or programs as they have additional guidelines.

Websites that show rates will not show what you actually qualify for, and if they don’t know your credit score they are probably only quoting for scores above 740.

[HLS]

Fannie/Freddie both offer investment property loans with 20% down/equity IF YOU CAN QUALIFY.
Pricing is better with 25% and slightly better with 40% down/equity. Applies to purchase OR refi.

Today, 5.00% was possible with no points and 25% equity on a 30 year fixed. Loans up to $417,000.

Loan limits/rates are higher on 2 to 4 unit properties.

It gets complicated if you do not have a 2 year history of being a landlord with other properties.
You may have to qualify for the entire payment + taxes, insurance and HOA, without any credit for potential rental income.

On a refi, they look at schedule E of tax returns and add back depreciation to the bottom line to figure the net income/loss.
I don’t think that 75% is used anymore by anyone.
That was several years ago.

You generally need at least 6 months liquid reserves for rental properties. Retirement accounts like PERS that cannot be borrowed against may no longer be used for reserves.

There are way too many restrictions/variables to list. Many people will not qualify without substantial income that will be accepted. Straight salary is easy to verify. Bonus, commission or self employed income can get really complicated.

There is no such thing as an easy loan today.
Even 50% down and loads of cash in the bank and a high credit score doesn’t make it much easier.
There is no one simple mortgage rate that everyone can qualify for.

Rates are close to historic lows but the lowest % of the population in history can qualify for ANY loan today, purchase OR refi, primary or investment.
It is more even difficult to get a loan on condo rentals.

For the lowest rates, banks don’t make up their own rules. F/F make the rules and banks are just mortgage brokers, many do not offer the best rates or programs as they have additional guidelines.

Websites that show rates will not show what you actually qualify for, and if they don’t know your credit score they are probably only quoting for scores above 740.

[HLS]

Fannie/Freddie both offer investment property loans with 20% down/equity IF YOU CAN QUALIFY.
Pricing is better with 25% and slightly better with 40% down/equity. Applies to purchase OR refi.

Today, 5.00% was possible with no points and 25% equity on a 30 year fixed. Loans up to $417,000.

Loan limits/rates are higher on 2 to 4 unit properties.

It gets complicated if you do not have a 2 year history of being a landlord with other properties.
You may have to qualify for the entire payment + taxes, insurance and HOA, without any credit for potential rental income.

On a refi, they look at schedule E of tax returns and add back depreciation to the bottom line to figure the net income/loss.
I don’t think that 75% is used anymore by anyone.
That was several years ago.

You generally need at least 6 months liquid reserves for rental properties. Retirement accounts like PERS that cannot be borrowed against may no longer be used for reserves.

There are way too many restrictions/variables to list. Many people will not qualify without substantial income that will be accepted. Straight salary is easy to verify. Bonus, commission or self employed income can get really complicated.

There is no such thing as an easy loan today.
Even 50% down and loads of cash in the bank and a high credit score doesn’t make it much easier.
There is no one simple mortgage rate that everyone can qualify for.

Rates are close to historic lows but the lowest % of the population in history can qualify for ANY loan today, purchase OR refi, primary or investment.
It is more even difficult to get a loan on condo rentals.

For the lowest rates, banks don’t make up their own rules. F/F make the rules and banks are just mortgage brokers, many do not offer the best rates or programs as they have additional guidelines.

Websites that show rates will not show what you actually qualify for, and if they don’t know your credit score they are probably only quoting for scores above 740.

[HLS]

Fannie/Freddie both offer investment property loans with 20% down/equity IF YOU CAN QUALIFY.
Pricing is better with 25% and slightly better with 40% down/equity. Applies to purchase OR refi.

Today, 5.00% was possible with no points and 25% equity on a 30 year fixed. Loans up to $417,000.

Loan limits/rates are higher on 2 to 4 unit properties.

It gets complicated if you do not have a 2 year history of being a landlord with other properties.
You may have to qualify for the entire payment + taxes, insurance and HOA, without any credit for potential rental income.

On a refi, they look at schedule E of tax returns and add back depreciation to the bottom line to figure the net income/loss.
I don’t think that 75% is used anymore by anyone.
That was several years ago.

You generally need at least 6 months liquid reserves for rental properties. Retirement accounts like PERS that cannot be borrowed against may no longer be used for reserves.

There are way too many restrictions/variables to list. Many people will not qualify without substantial income that will be accepted. Straight salary is easy to verify. Bonus, commission or self employed income can get really complicated.

There is no such thing as an easy loan today.
Even 50% down and loads of cash in the bank and a high credit score doesn’t make it much easier.
There is no one simple mortgage rate that everyone can qualify for.

Rates are close to historic lows but the lowest % of the population in history can qualify for ANY loan today, purchase OR refi, primary or investment.
It is more even difficult to get a loan on condo rentals.

For the lowest rates, banks don’t make up their own rules. F/F make the rules and banks are just mortgage brokers, many do not offer the best rates or programs as they have additional guidelines.

Websites that show rates will not show what you actually qualify for, and if they don’t know your credit score they are probably only quoting for scores above 740.

[HLS]

Fannie/Freddie both offer investment property loans with 20% down/equity IF YOU CAN QUALIFY.
Pricing is better with 25% and slightly better with 40% down/equity. Applies to purchase OR refi.

Today, 5.00% was possible with no points and 25% equity on a 30 year fixed. Loans up to $417,000.

Loan limits/rates are higher on 2 to 4 unit properties.

It gets complicated if you do not have a 2 year history of being a landlord with other properties.
You may have to qualify for the entire payment + taxes, insurance and HOA, without any credit for potential rental income.

On a refi, they look at schedule E of tax returns and add back depreciation to the bottom line to figure the net income/loss.
I don’t think that 75% is used anymore by anyone.
That was several years ago.

You generally need at least 6 months liquid reserves for rental properties. Retirement accounts like PERS that cannot be borrowed against may no longer be used for reserves.

There are way too many restrictions/variables to list. Many people will not qualify without substantial income that will be accepted. Straight salary is easy to verify. Bonus, commission or self employed income can get really complicated.

There is no such thing as an easy loan today.
Even 50% down and loads of cash in the bank and a high credit score doesn’t make it much easier.
There is no one simple mortgage rate that everyone can qualify for.

Rates are close to historic lows but the lowest % of the population in history can qualify for ANY loan today, purchase OR refi, primary or investment.
It is more even difficult to get a loan on condo rentals.

For the lowest rates, banks don’t make up their own rules. F/F make the rules and banks are just mortgage brokers, many do not offer the best rates or programs as they have additional guidelines.

Websites that show rates will not show what you actually qualify for, and if they don’t know your credit score they are probably only quoting for scores above 740.

[HLS]

Some of you have information that is dangerous.
About 96% of loans are govt backed loans. Fannie/Freddie & FHA.

BANKS ARE MORTGAGE BROKERS. Some of you just don’t get it. They don’t make up their own rules for 15/30 YR fixed loans. GSE’s make the rules, and many rules are INSANE. that’s the way it is.

I don’t do FHA loans. Here are some guidelines for Fannie/Freddie.

FNMA does NOT allow “non occupant” co borrowers
Freddie DOES. Not all lenders do both.
Even if you put 50% down.

FNMA maxes out at about 45% back end DTI
FREDDIE goes higher. 50%+

GIFT FUNDS:
IF the gift is less than 20%, the borrower must have at least 5% of their own funds seasoned/documented to guidelines.

Seasoned funds usually means providing ALL numbered pages of 2 months regular bank statements.
If there is a large deposit on either month, it will need to be paper trailed.
I have never had to provide a statement that was 3 months+ old, you can plan accordingly.

IF gift funds, the borrower must provide 2 months statements for the same reasons and a standard gift letter.
Gift funds do not need to be seasoned. They can be transferred to escrow just prior to closing.

There are lots of ways to plan and make a loan simple but bad information provided to people can really mess them up.

Online snapshots are often not accepted. Normal statements sent once a month are always acceptable.

Different lenders rarely have rules that are different. Each situation is different.

For those who believe that BANKS are some magical place to get free loans, there is no such thing.
I had a guy call me today. He went to “Big Bad Bank” for a quote today.
My quote for the same loan 10 minutes later was $2400 less than BBB quoted him. This happens often.

Guidelines are GUIDELINES are guidelines, even if they don’t make sense to you. They don’t always make sense to me either.. HLS

[HLS]

Some of you have information that is dangerous.
About 96% of loans are govt backed loans. Fannie/Freddie & FHA.

BANKS ARE MORTGAGE BROKERS. Some of you just don’t get it. They don’t make up their own rules for 15/30 YR fixed loans. GSE’s make the rules, and many rules are INSANE. that’s the way it is.

I don’t do FHA loans. Here are some guidelines for Fannie/Freddie.

FNMA does NOT allow “non occupant” co borrowers
Freddie DOES. Not all lenders do both.
Even if you put 50% down.

FNMA maxes out at about 45% back end DTI
FREDDIE goes higher. 50%+

GIFT FUNDS:
IF the gift is less than 20%, the borrower must have at least 5% of their own funds seasoned/documented to guidelines.

Seasoned funds usually means providing ALL numbered pages of 2 months regular bank statements.
If there is a large deposit on either month, it will need to be paper trailed.
I have never had to provide a statement that was 3 months+ old, you can plan accordingly.

IF gift funds, the borrower must provide 2 months statements for the same reasons and a standard gift letter.
Gift funds do not need to be seasoned. They can be transferred to escrow just prior to closing.

There are lots of ways to plan and make a loan simple but bad information provided to people can really mess them up.

Online snapshots are often not accepted. Normal statements sent once a month are always acceptable.

Different lenders rarely have rules that are different. Each situation is different.

For those who believe that BANKS are some magical place to get free loans, there is no such thing.
I had a guy call me today. He went to “Big Bad Bank” for a quote today.
My quote for the same loan 10 minutes later was $2400 less than BBB quoted him. This happens often.

Guidelines are GUIDELINES are guidelines, even if they don’t make sense to you. They don’t always make sense to me either.. HLS

[HLS]

Some of you have information that is dangerous.
About 96% of loans are govt backed loans. Fannie/Freddie & FHA.

BANKS ARE MORTGAGE BROKERS. Some of you just don’t get it. They don’t make up their own rules for 15/30 YR fixed loans. GSE’s make the rules, and many rules are INSANE. that’s the way it is.

I don’t do FHA loans. Here are some guidelines for Fannie/Freddie.

FNMA does NOT allow “non occupant” co borrowers
Freddie DOES. Not all lenders do both.
Even if you put 50% down.

FNMA maxes out at about 45% back end DTI
FREDDIE goes higher. 50%+

GIFT FUNDS:
IF the gift is less than 20%, the borrower must have at least 5% of their own funds seasoned/documented to guidelines.

Seasoned funds usually means providing ALL numbered pages of 2 months regular bank statements.
If there is a large deposit on either month, it will need to be paper trailed.
I have never had to provide a statement that was 3 months+ old, you can plan accordingly.

IF gift funds, the borrower must provide 2 months statements for the same reasons and a standard gift letter.
Gift funds do not need to be seasoned. They can be transferred to escrow just prior to closing.

There are lots of ways to plan and make a loan simple but bad information provided to people can really mess them up.

Online snapshots are often not accepted. Normal statements sent once a month are always acceptable.

Different lenders rarely have rules that are different. Each situation is different.

For those who believe that BANKS are some magical place to get free loans, there is no such thing.
I had a guy call me today. He went to “Big Bad Bank” for a quote today.
My quote for the same loan 10 minutes later was $2400 less than BBB quoted him. This happens often.

Guidelines are GUIDELINES are guidelines, even if they don’t make sense to you. They don’t always make sense to me either.. HLS

[Author]

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