How much $ out with no-income-verify loan? - LONG - Posted by marla (SC CA)


#1

Posted by Paul Macdonald on November 22, 1998 at 08:31:47:

Dang Marla! It never pays to get complacent. And you just proved it! I’ve never done a free standing condo unit. Only apartments and townhomes to date.

I don’t see why being a free standing unit should change anything other than the appraisal but it never pays to assume when we are talking about mortgages.

On Monday I’ll have a chat with a couple underwriters and get some feedback. My gut feeling is that there shouldn’t be any changes in normal procedure,

I’ll let you know in a day or so when I get my answers back.

Good question. Nice twist.

Paul Macdonald


#2

How much $ out with no-income-verify loan? - LONG - Posted by marla (SC CA)

Posted by marla (SC CA) on November 21, 1998 at 15:41:08:

Let me start by expressing my appreciation for this website and all the information shared by so many knowledgeable investors … Thank you very much!

Background …

I want to put some of the equity I have in my primary residence (condo) into REI. I have no CC debt and my low-maint car is paid for. I have a sizeable 101(k) account and additional property out of state. I’ve recently separated from my employer of several years, taking enough in bonus & severence to cover my living expenses for a year.

The condo has appraised for $290K. I owe $189. The first broker I talked to found a lender that will refinance without an income verification, letting me take out $27K cash.

Question …

Is 75% LTV the best I can expect to find for a no-income-verify refi loan or should I shop around some? If the latter, tips are welcomed!

Side note …

When the broker’s assistant called me to let me know I wouldn’t be getting the $35K I’d applied for, I paused and thought out loud, a bit, about how I might need the additional $8K for an investment I was considering. After the assistant assured me that all lenders would cap the loan at 75% LTV, we ended our conversation.

About 10 minutes later, the assistant called back to let me know that if I needed the additional funds, her boss said he’d lend me the money. (private funds) Because part of my goal in refinancing was to start a relationship with a broker I could go to down the road for investor loans, my reaction to the offer has been “This is a good start and possibly makes up for getting less cash out on the refinance.” Am I being naive about this?

TIA for your advise/comments.
Marla


#3

Re: How much $ out with no-income-verify loan? - Posted by Paul Macdonald

Posted by Paul Macdonald on November 21, 1998 at 18:42:14:

The most liberal lenders I have will go up to 90% No Doc. on owner occupied deals. Real good rates up to 80 and 85% and 90% LTV. no income which is not as liberal as no doc… the more you go outside the norm, the more it will cost you rate or pointwise (or both!).

However, being in a condo might/will change the picture. Depending on the back end investor, if it’s a hi-rise or 3 story or less will make a difference. The ratio of owner occ.'s to renters plays a part also. But best case is the 90% LTV.

“This is a good start and possibly makes up for getting less cash out on the refinance.” Am I being naive about this? - YES!

If the relationship doesn’t start on an even keel, it’ll never get there.

Good Hunting,

Paul Macdonald


#4

Re: How much $ out with no-income-verify loan? - Posted by JPiper

Posted by JPiper on November 21, 1998 at 16:19:00:

I would call Ed Garcia at 909-944-0199. He’s the owner of American Heritage, a mortgage brokering company in Southern California, and a frequent and knowledgable contributor to this site. I think you will find him to be very helpful.

JPiper


#5

Re: How much $ out with no-income-verify loan? - Posted by marla (SC CA)

Posted by marla (SC CA) on November 21, 1998 at 20:04:26:

Paul, thanks for the info on LTV rates.

My condo’s unique for the 20-year-old, 36-unit complex in that it is the only single-story/free-standing unit (almost all others are TH’s) and has a patio that’s larger than those of many SFH’s in the area.

The HOA limits the number of rentals to (as I recall) 40% and I believe we’re at the limit.

Do you know how the above might affect the LTV with your lenders?

TIA,
Marla