[urbanrealtor]

Josh, have you met you?

On a more serious note, I often believe that I somehow tricked my wife and then I feel guilty that I have somehow limited her options for happiness.
Then I wonder if she will ever notice that she settled.

I mean seriously, how many chicks are able to debate Foucault while watching DS9, have an encyclopedic knowledge of Bauhaus and Iggy Pop, and keep a set of 10-siders in their backpack?

Not bad for a someone who grew up on welfare.

[urbanrealtor]

Josh, have you met you?

On a more serious note, I often believe that I somehow tricked my wife and then I feel guilty that I have somehow limited her options for happiness.
Then I wonder if she will ever notice that she settled.

I mean seriously, how many chicks are able to debate Foucault while watching DS9, have an encyclopedic knowledge of Bauhaus and Iggy Pop, and keep a set of 10-siders in their backpack?

Not bad for a someone who grew up on welfare.

[urbanrealtor]

[quote=HLS]I dont know if there are any state laws regarding this ?
1 to 4 units is considered “residential”

FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
You need 25% down for the best pricing on rental property.

It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

Conforming loan limits on 3 units is $645,300.
On 4 units it is $801,950.

It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.[/quote]

FHA can go as low as like 5% (maybe even 3.5 but I have only seen it as low as 5) for 2-4 units.

If there are 3 or 4 units then the market rent times the FHA area vacancy factor (which is not the same as the actual vacancy rate) must carry the units.

For example if the market gross rent (as determined by the appraisal) is 5000 per month (irrespective of the actual rent) and the FHA factor is 10%, then the PITI can’t be more than $4500. I think there is some room for error with regard to the “T” and the “I”.

[urbanrealtor]

[quote=HLS]I dont know if there are any state laws regarding this ?
1 to 4 units is considered “residential”

FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
You need 25% down for the best pricing on rental property.

It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

Conforming loan limits on 3 units is $645,300.
On 4 units it is $801,950.

It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.[/quote]

FHA can go as low as like 5% (maybe even 3.5 but I have only seen it as low as 5) for 2-4 units.

If there are 3 or 4 units then the market rent times the FHA area vacancy factor (which is not the same as the actual vacancy rate) must carry the units.

For example if the market gross rent (as determined by the appraisal) is 5000 per month (irrespective of the actual rent) and the FHA factor is 10%, then the PITI can’t be more than $4500. I think there is some room for error with regard to the “T” and the “I”.

[urbanrealtor]

[quote=HLS]I dont know if there are any state laws regarding this ?
1 to 4 units is considered “residential”

FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
You need 25% down for the best pricing on rental property.

It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

Conforming loan limits on 3 units is $645,300.
On 4 units it is $801,950.

It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.[/quote]

FHA can go as low as like 5% (maybe even 3.5 but I have only seen it as low as 5) for 2-4 units.

If there are 3 or 4 units then the market rent times the FHA area vacancy factor (which is not the same as the actual vacancy rate) must carry the units.

For example if the market gross rent (as determined by the appraisal) is 5000 per month (irrespective of the actual rent) and the FHA factor is 10%, then the PITI can’t be more than $4500. I think there is some room for error with regard to the “T” and the “I”.

[urbanrealtor]

[quote=HLS]I dont know if there are any state laws regarding this ?
1 to 4 units is considered “residential”

FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
You need 25% down for the best pricing on rental property.

It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

Conforming loan limits on 3 units is $645,300.
On 4 units it is $801,950.

It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.[/quote]

FHA can go as low as like 5% (maybe even 3.5 but I have only seen it as low as 5) for 2-4 units.

If there are 3 or 4 units then the market rent times the FHA area vacancy factor (which is not the same as the actual vacancy rate) must carry the units.

For example if the market gross rent (as determined by the appraisal) is 5000 per month (irrespective of the actual rent) and the FHA factor is 10%, then the PITI can’t be more than $4500. I think there is some room for error with regard to the “T” and the “I”.

[urbanrealtor]

[quote=HLS]I dont know if there are any state laws regarding this ?
1 to 4 units is considered “residential”

FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
You need 25% down for the best pricing on rental property.

It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

Conforming loan limits on 3 units is $645,300.
On 4 units it is $801,950.

It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.[/quote]

FHA can go as low as like 5% (maybe even 3.5 but I have only seen it as low as 5) for 2-4 units.

If there are 3 or 4 units then the market rent times the FHA area vacancy factor (which is not the same as the actual vacancy rate) must carry the units.

For example if the market gross rent (as determined by the appraisal) is 5000 per month (irrespective of the actual rent) and the FHA factor is 10%, then the PITI can’t be more than $4500. I think there is some room for error with regard to the “T” and the “I”.

[urbanrealtor]

[quote=HLS][quote=sd_t2] a refinance at this point could trigger a very bad consequence…the refinanced balance would be a recourse loan, if the original loan used to buy the house, that is protected by the purchase money exemption and is thus nonrecourse.[/quote]

I do not belive that is correct… My understanding of current tax law, valid through Dec 31st 2012, is that refinance of any loan amount that was used to acquire and/or improve a primary residence remains exempt from becoming recourse debt…
It is true that any cash taken out over and above this amount MAY be considered taxable income (but it may not be enforced)
*Consult your tax adviser for your situation*

“Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681”

Refer to page 7, 3rd column, halfway down:
http://www.irs.gov/pub/irs-pdf/p4681.pdf ..HLS[/quote]

I think by “recourse” he meant that the lender could come after the borrower if there were a negative equity sale or repossession.

Edit: And it looks like somebody already posted that so sorry for the repetition.

Edit of the edit:
FSD, we are all taking it as legal advice and suing you when it does not work. Really it is a good thing to make people aware of. Thank you.

[urbanrealtor]

[quote=HLS][quote=sd_t2] a refinance at this point could trigger a very bad consequence…the refinanced balance would be a recourse loan, if the original loan used to buy the house, that is protected by the purchase money exemption and is thus nonrecourse.[/quote]

I do not belive that is correct… My understanding of current tax law, valid through Dec 31st 2012, is that refinance of any loan amount that was used to acquire and/or improve a primary residence remains exempt from becoming recourse debt…
It is true that any cash taken out over and above this amount MAY be considered taxable income (but it may not be enforced)
*Consult your tax adviser for your situation*

“Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681”

Refer to page 7, 3rd column, halfway down:
http://www.irs.gov/pub/irs-pdf/p4681.pdf ..HLS[/quote]

I think by “recourse” he meant that the lender could come after the borrower if there were a negative equity sale or repossession.

Edit: And it looks like somebody already posted that so sorry for the repetition.

Edit of the edit:
FSD, we are all taking it as legal advice and suing you when it does not work. Really it is a good thing to make people aware of. Thank you.

[urbanrealtor]

[quote=HLS][quote=sd_t2] a refinance at this point could trigger a very bad consequence…the refinanced balance would be a recourse loan, if the original loan used to buy the house, that is protected by the purchase money exemption and is thus nonrecourse.[/quote]

I do not belive that is correct… My understanding of current tax law, valid through Dec 31st 2012, is that refinance of any loan amount that was used to acquire and/or improve a primary residence remains exempt from becoming recourse debt…
It is true that any cash taken out over and above this amount MAY be considered taxable income (but it may not be enforced)
*Consult your tax adviser for your situation*

“Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681”

Refer to page 7, 3rd column, halfway down:
http://www.irs.gov/pub/irs-pdf/p4681.pdf ..HLS[/quote]

I think by “recourse” he meant that the lender could come after the borrower if there were a negative equity sale or repossession.

Edit: And it looks like somebody already posted that so sorry for the repetition.

Edit of the edit:
FSD, we are all taking it as legal advice and suing you when it does not work. Really it is a good thing to make people aware of. Thank you.

[urbanrealtor]

[quote=HLS][quote=sd_t2] a refinance at this point could trigger a very bad consequence…the refinanced balance would be a recourse loan, if the original loan used to buy the house, that is protected by the purchase money exemption and is thus nonrecourse.[/quote]

I do not belive that is correct… My understanding of current tax law, valid through Dec 31st 2012, is that refinance of any loan amount that was used to acquire and/or improve a primary residence remains exempt from becoming recourse debt…
It is true that any cash taken out over and above this amount MAY be considered taxable income (but it may not be enforced)
*Consult your tax adviser for your situation*

“Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681”

Refer to page 7, 3rd column, halfway down:
http://www.irs.gov/pub/irs-pdf/p4681.pdf ..HLS[/quote]

I think by “recourse” he meant that the lender could come after the borrower if there were a negative equity sale or repossession.

Edit: And it looks like somebody already posted that so sorry for the repetition.

Edit of the edit:
FSD, we are all taking it as legal advice and suing you when it does not work. Really it is a good thing to make people aware of. Thank you.

[urbanrealtor]

[quote=HLS][quote=sd_t2] a refinance at this point could trigger a very bad consequence…the refinanced balance would be a recourse loan, if the original loan used to buy the house, that is protected by the purchase money exemption and is thus nonrecourse.[/quote]

I do not belive that is correct… My understanding of current tax law, valid through Dec 31st 2012, is that refinance of any loan amount that was used to acquire and/or improve a primary residence remains exempt from becoming recourse debt…
It is true that any cash taken out over and above this amount MAY be considered taxable income (but it may not be enforced)
*Consult your tax adviser for your situation*

“Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681”

Refer to page 7, 3rd column, halfway down:
http://www.irs.gov/pub/irs-pdf/p4681.pdf ..HLS[/quote]

I think by “recourse” he meant that the lender could come after the borrower if there were a negative equity sale or repossession.

Edit: And it looks like somebody already posted that so sorry for the repetition.

Edit of the edit:
FSD, we are all taking it as legal advice and suing you when it does not work. Really it is a good thing to make people aware of. Thank you.

[urbanrealtor]

Easy.
Get an agent experienced in shorts and have them list it and there you go.

It usually does not actually have to go on the MLS.

Note:
sdr and I are experienced in shorts but you can find loads of other reputable short agents. We aren’t here to harvest clients. I recommend AGAINST going with a large short sale factory type agent.

The point is that time is of the essence here.

There won’t be any trouble stalling the repo date as long as the bank knows that there is a short sale happening.

Very rarely a bank will refuse a short just because they don’t want to reschedule but generally larger banks are very happy to put it off.

And everyone wins:

You: If the bank approves the short sale, you get the property.

Seller: They get to stay there for free until the approval gets processed (usually a few months)

The bank: They don’t have to repo another property (which is actually very expensive to do) and instead get the money.

But seriously, Step 1 is getting an agent to stall the repo date. If you really feel brave you can try it yourself. Most agents find it really difficult and irksome. It is not for the faint of heart.

[urbanrealtor]

Easy.
Get an agent experienced in shorts and have them list it and there you go.

It usually does not actually have to go on the MLS.

Note:
sdr and I are experienced in shorts but you can find loads of other reputable short agents. We aren’t here to harvest clients. I recommend AGAINST going with a large short sale factory type agent.

The point is that time is of the essence here.

There won’t be any trouble stalling the repo date as long as the bank knows that there is a short sale happening.

Very rarely a bank will refuse a short just because they don’t want to reschedule but generally larger banks are very happy to put it off.

And everyone wins:

You: If the bank approves the short sale, you get the property.

Seller: They get to stay there for free until the approval gets processed (usually a few months)

The bank: They don’t have to repo another property (which is actually very expensive to do) and instead get the money.

But seriously, Step 1 is getting an agent to stall the repo date. If you really feel brave you can try it yourself. Most agents find it really difficult and irksome. It is not for the faint of heart.

[urbanrealtor]

Easy.
Get an agent experienced in shorts and have them list it and there you go.

It usually does not actually have to go on the MLS.

Note:
sdr and I are experienced in shorts but you can find loads of other reputable short agents. We aren’t here to harvest clients. I recommend AGAINST going with a large short sale factory type agent.

The point is that time is of the essence here.

There won’t be any trouble stalling the repo date as long as the bank knows that there is a short sale happening.

Very rarely a bank will refuse a short just because they don’t want to reschedule but generally larger banks are very happy to put it off.

And everyone wins:

You: If the bank approves the short sale, you get the property.

Seller: They get to stay there for free until the approval gets processed (usually a few months)

The bank: They don’t have to repo another property (which is actually very expensive to do) and instead get the money.

But seriously, Step 1 is getting an agent to stall the repo date. If you really feel brave you can try it yourself. Most agents find it really difficult and irksome. It is not for the faint of heart.

[Author]

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