Interest rates on investment properties

Not a rate question but I wanted to have a discussion regarding California/evictions. It seems more and more likely that the government will be trying to avoid an ?eviction tsunami?. I?ve heard bills that may allow renters a year to pay back at least half owed but allow them to stay in homes...other bills that give landlord some type of tax credit in exchange for lack of rent income etc. what protections do landlords have in these times?

I?ve been blessed so far as everything has been going smoothly but for the sake of conservation, it does seem like possible rough times ahead.  It seems it wouldn?t matter if you had a month to month or 1 year contract, you could be at the mercy of tenants if the eviction process was removed correct?
 
SoclosetoIrvine said:
Not a rate question but I wanted to have a discussion regarding California/evictions. It seems more and more likely that the government will be trying to avoid an ?eviction tsunami?. I?ve heard bills that may allow renters a year to pay back at least half owed but allow them to stay in homes...other bills that give landlord some type of tax credit in exchange for lack of rent income etc. what protections do landlords have in these times?

I?ve been blessed so far as everything has been going smoothly but for the sake of conservation, it does seem like possible rough times ahead.  It seems it wouldn?t matter if you had a month to month or 1 year contract, you could be at the mercy of tenants if the eviction process was removed correct?
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There is always a struggle between business and the individual.  Going back to the mortgage collapse, it took government and businesses years to figure the right balance to strike between foreclosure, modification, and other possibility.  During that time, there was a huge mess that resulted in messed up modification, clogged courts, destroyed homes, and people who were angry at the process. 

I would like to think that the banks have learned from that experience but you never know...the bigger issue is commercial property rather than residential this time and with the Fed deciding to turn the printing pressed on at full blast...the banks may take it easier this time around.
 
This sounds familiar

As of August 25, 3.9 million homeowners were in mortgage forbearance programs, according to Black Knight, a mortgage technology and analytics firm. This represents 7.4% of all active mortgages and is unchanged from the week before. The numbers have not improved in the past two weeks.

More concerning is that close to three quarters of those in forbearance have had their terms extended from the initial three-month period. This suggests that their financial situations are not improving, and they are still unable to make their monthly payments. Another survey from the Mortgage Bankers Association also showed the rate of improvement slowing markedly.
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https://www.cnbc.com/2020/08/28/improvement-in-coronavirus-mortgage-bailout-stalls.html
 
Of course, this gives the big boys time to ready their positions for when they let the dam collapse, the big life boat is ready to be deployed while most drowned.

This bail out did little to fix the real issues.
 
What is the deal with four mortgages. Gets harder for one to get a mortgage after 4 open lines? Why? Why 4 is a magic number?
 
Cornflakes said:
What is the deal with four mortgages. Gets harder for one to get a mortgage after 4 open lines? Why? Why 4 is a magic number?
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Fannie / Freddie limit used to be 4 mortgages but changed to 10 mortgages limit. But many lenders might limit you at 4 mortgages because the more you have the more work is involved in underwriting your loan. More properties = more liabilities and more documents, etc etc.
 
Cares said:
Cornflakes said:
What is the deal with four mortgages. Gets harder for one to get a mortgage after 4 open lines? Why? Why 4 is a magic number?
Click to expand...

Fannie / Freddie limit used to be 4 mortgages but changed to 10 mortgages limit. But many lenders might limit you at 4 mortgages because the more you have the more work is involved in underwriting your loan. More properties = more liabilities and more documents, etc etc.
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Aka lazy underwriters. :p
 
I don?t understand underwriters. Sometimes I wonder if they are smart enough to truly assess the net worth, credit worthiness and overall risk profile for someone who is outside the simple bounds of w2 earner and first home purchase ever.

Last year, I had an uw that was stuck on verifying my previous employer. It being  a small startup and all the ceo did not give his time of the day to verify that I worked there. I gave all paychecks for my entire employment and W2 to prove that I did work there, but it wouldn?t work for uw.
 
Cornflakes said:
I don?t understand underwriters. Sometimes I wonder if they are smart enough to truly assess the net worth, credit worthiness and overall risk profile for someone who is outside the simple bounds of w2 earner and first home purchase ever.

Last year, I had an uw that was stuck on verifying my previous employer. It being  a small startup and all the ceo did not give his time of the day to verify that I worked there. I gave all paychecks for my entire employment and W2 to prove that I did work there, but it wouldn?t work for uw.
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If you think that was bad, I'll give you an even better item that an underwriter got stuck on when I refinanced my West Irvine home years ago. So my broker set up an auto debit that takes $100 out of my bank account each month (it's the admin fee for things like E&O insurance). As part of the conditional approval, the underwriter asked for a letter of explanation for this recurring $100 being taken out of my bank account which I provided. Well that wasn't enough so they asked for a letter from my broker on the brokerage letterhead stating that it was not related to any kind of debt. Surprisingly that wasn't even and the underwriter went back for a third bite out of the apple and asked to see the broker's bank statement showing the deposits going in.  I was like WTF, no way you are going to get that so I talked to the lender and asked him to step in to stop the nonsense. He contacted the underwriting manager about the situation and what has been provided and the underwriting manager told the underwriter to stop and move on.  haha
 
USCTrojanCPA said:
Cornflakes said:
I don?t understand underwriters. Sometimes I wonder if they are smart enough to truly assess the net worth, credit worthiness and overall risk profile for someone who is outside the simple bounds of w2 earner and first home purchase ever.

Last year, I had an uw that was stuck on verifying my previous employer. It being  a small startup and all the ceo did not give his time of the day to verify that I worked there. I gave all paychecks for my entire employment and W2 to prove that I did work there, but it wouldn?t work for uw.
Click to expand...

If you think that was bad, I'll give you an even better item that an underwriter got stuck on when I refinanced my West Irvine home years ago. So my broker set up an auto debit that takes $100 out of my bank account each month (it's the admin fee for things like E&O insurance). As part of the conditional approval, the underwriter asked for a letter of explanation for this recurring $100 being taken out of my bank account which I provided. Well that wasn't enough so they asked for a letter from my broker on the brokerage letterhead stating that it was not related to any kind of debt. Surprisingly that wasn't even and the underwriter went back for a third bite out of the apple and asked to see the broker's bank statement showing the deposits going in.  I was like WTF, no way you are going to get that so I talked to the lender and asked him to step in to stop the nonsense. He contacted the underwriting manager about the situation and what has been provided and the underwriting manager told the underwriter to stop and move on.  haha
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That is nuts.

 
Sometimes it just is like that. If you get stuck with a junior UW then you can get your loan stuck. Sometimes they are laser sharp on the fine details that they miss the bigger picture.
 
I was offered 2.875% 30 years fixed for a conforming loan refi on my rental (60% LTV). Closing costs around $3.5K.

I may try to shop that around a bit but it looks pretty good to me.
 
marmott said:
I was offered 2.875% 30 years fixed for a conforming loan refi on my rental (60% LTV). Closing costs around $3.5K.

I may try to shop that around a bit but it looks pretty good to me.
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Who was this from?
 
As long as it's Standard Conforming ($510,400) no cash out, some fees paid by the borrower, impounded, good FICO and sub 65% LTV, below 3 percent loan terms for investment homes is still possible to obtain. Pricing often bends in your favor below 60 LTV and an impound account can usually be waived then.

My .02c
 
Caution on Loan Depot.

I applied for a rental loan refi on 7/16. No closing CDs are out yet. Yes, the file is slightly more complicated but this much time is not justified. The processor I have been assigned is not very sharp and the UW keeps asking one document at a time with an interval of few days in between. I am confident that the loan will fund but the sheer breakdown of their process...ugg...

e.g. The mortgage statement I provided on 7/16 clearly states that the property is deeded to the trust. and I provided trust document at the same time. They just ordered trust cert last week.

Had similar experience last year when I got my primary with them. I think that their UW dept is too skittish and the processors are not top talent.

Their rates and terms are competitive enough but I can not deal with the sluggish process. I guess I am done with LD after this loan closes.
 
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