New Home Owner How Do I Do REI

Financing, Hard Money Lenders, Private Money
1

Hey All,

I and my wife will be closing on very first house next week; we got an 80/20 loan at very good rates. My question - is it still possible for us to get more financing to do some REI if we just purchased our first house. We both have excellent credit and our house was appraised for 2k more than the purchase price. What would be our best options for additional financing sources? If possible.

2

Congratulations on your closing!

In answer to your question

is it still possible for us to get more financing to do some REI if we just purchased our first house. We both have excellent credit and our house was appraised for 2k more than the purchase price. What would be our best options for additional financing sources?

Yes, depending on what your DTI (Debt To Income) is you may still have room to add another mortgage.

You stated that your credit is great, so, if this is true you could go Stated Income which would eliminate the DTI issue.

3

Would getting a Hard Money Loan be considered a no doc/stated income or are there other loan programs besides Hard Money that are considered stated income.

4

There are confroming loans which offer these guidelines.

5

Is there a set standard ratio number of DTI (Debt To Income) that determines if you qualify for loan program to do some REI along with excellent credit.

6

Conforming ratios are 28/36

Many lender have programs that will allow up to 45%

A few allow up to 60%

7

When I apply for a loan for REI, can the loan amount be above the purchase price to include other expenses such as rehab cost and maybe 60 days of mortgage payments. What can be included and not included in the total loan amount for REI.

Thank you guys very much, this forum is very informative.

8

When I first started in the business my broker told me, “Pat. The first thing you need to understand is that banks don’t loan money to people that need it. If you remember this you job will be a lot easier.”

If you have the cash for the rehab work and 60 days of payments showing in an account most lenders will allow you to include the costs into the loan.

There are rehab loans available and you can defer your mortgage payment a month by paying the interest upfront.

Some hard money lenders may work with you, but that is largely dependent upon the property and your rehab experience.

Regards,
Pat Lawson