Fast Closes and Rentbacks to Compete Against Cash; CD Timing

Rentbacks: All lenders offer lower rates for “owner-occupants” than they do for investors. To qualify for “owner-occupied” rates, buyers must agree to move into the property within 60 days of close. Hence, most lenders allow sellers to rentback properties from buyers for up to 59 days. Competing Against Cash Offers: Writing an offer with a […]Read More

Occupying Properties w/i 60 Days; Notice to Vacate; Proof; Calling Loan

“Owner occupied” financing is more favorable than investment property financing b/c the risk of default is much less. B/c of this lenders need to make sure properties are actually owner-occupied. “Owner occupant” buyers must take possession within 60 days of close of escrow (this is why “rent-backs” can’t exceed 60 days too). Problems arise if […]Read More

Condos – Financing for “Unwarrantable”? What to Watch For

The most common criteria that make condos “unwarrantable” (unable to be financed) include: (1) HOA in litigation; (2) more than 10% of units owned by one owner or developer; (3) more than 15% of units are behind on HOA dues; (4) less than 50% of the units are owner-occupied.** **Owner occupancy ratios are only an […]Read More