Posts

Biggest Increase in 3 Years; Unpredictability/Timing the Markets

We are seeing the biggest rate increase in 3 years. Investors moved into stocks and out of bonds, and rates climbed. Trump’s promises to cut taxes, to increase government spending and to deregulate were perceived as positive signs by investors. Investors also perceive inflation risk b/c Trump’s policies might require more government borrowing. Inflation risk […]Read More

Difference Between Servicer and Mortgage Holder/Owner

Borrowers often get confused about the difference between their loan’s “Servicer” and their loan’s “Owner”. After a mortgage bank funds and records a loan, they sell the loan either to other “investors” (big banks, insurance companies, pension funds, etc.) or to Fannie Mae/Freddie Mac. In many cases, however, mortgage banks sell the “Servicing” separately from […]Read More

Loans Have To Be “Salable;” No Exceptions For Strong Borrowers

We have seen a few major mortgage companies go out of business lately, despite a strong market for mortgages overall. One of the reasons they went out of business was their inability to sell loans on the secondary market. Mortgage banks fund loans with large warehouse lines or lines of credit. They then sell the […]Read More

Rates Way Down, When They Are Supposed To Be Up? What Is Going On?

Rates have dropped precipitously in recent days b/c of the global sell-off in stocks. Once again, weak economies worldwide are spooking investors and causing them to sell stocks and move to bonds en masse. When investors move to bonds, the price of bonds increases b/c of increased demand, and this pushes yields and rates down. […]Read More

Condo Owner Occupancy Ratios Irrelevant for Owner-Occupants

This is a reminder that Condominium Owner-Occupancy Ratios are irrelevant if the person seeking financing intends to occupy the unit she is buying. It is only investors looking for financing who need to worry about occupancy ratios. Most investor financing requires occupancy ratios greater than 50%. Jay Voorhees Founder/Broker | JVM Lending (855) 855-4491 | DRE# […]Read More

Condo Owner Occupancy Ratios Are Irrelevant for Owners

We spoke to a borrower over the weekend who was interested in buying a Condo to live in. The listing agent forced him to use her lender b/c “the project is less than 50% owner-occupied, and there is no way your lender can get financing.” She was wrong. Her comment prompted us to send out […]Read More

Condo Questions To Ask? Owner Occ Ratio Can Be Under 50%

We are frequently asked about Condo Guidelines. Owner occupancy ratio requirements come up most often. For investors, the owner occupancy ratio needs to be over 50%. Owner occupants, however, can purchase in complexes with ratios under 50%. Litigation, HOA delinquencies over 15%, and a single owner owning over 10% of the units can also be […]Read More

Using Cash Out From Primary Residence to Buy Investment Property

With values increasing in many areas, we like to remind real estate investors to look at their primary residence as a source of financing for investment properties. Pulling cash out of one’s primary residence provides major advantages for investors making offers on properties in this very competitive market: (1) it allows investors to make far […]Read More

Options For Investors Buying “Fixer Uppers”

Investors looking to buy “fixer uppers” that are in poor condition have only a few options. Hard Money or Private Money/30%+ Down: These lenders do not care about condition, but they do require 30% down or more, and their rates are in excess of 10%. In addition, they charge from 3 to 5 points. Fannie […]Read More

Investor Options for Buying Real Estate; Pay Cash and Refi; 75% LTV Refi

Because we get so many repeat questions from investors, we thought we would address investor options again. Investors can pay cash for properties, and refinance immediately afterwards for up to 90 days. If they wait until after 90 days, they miss “the refi window,” and have to wait a full six months from close. There […]Read More

Investors/Buyers Using Rental Income to Qualify – No Seasoning

Most people are aware that sellers can use rental income from their departing residence if there is a sufficient equity cushion (conventional – 30%; FHA – 25%). Investors, with tight debt ratios, can also usually use the rent from the house they are buying to qualify. Investors need only to prove they have a potential […]Read More