if you assume a va loan the seller is indeed still liable for that loan unless it is assumed with a va loan also and the buyers entitlement get exchanged for the sellers entitlement .. also i have have many people tell me that the fha loan assumption will still be liable to the seller also ............
Hi Clint, this is.great information! I need to scale my real estate investments. How can I talk to him about this DSCR Loans or strategy to acquire more properties? Thank you
The “builder forward” commitment you’re speaking of can be performed by any buyer. It’s just seller concessions. The builder is packing the costs of buying that rate down into your sales price. It’s nothing special and every investor does this if it makes dollars to sense todo so.
Not quite. Say you are buying a 400k house and you wanted to buy down 3 pts. I think that would be 12k. The seller could not do this for you because it is 4k above the 2% concession limitation unless I am missing something.
Please remember that investor loan concessions are limited to 2%. The builder forward allows the builder and developers to contribute far beyond that as Clint alluded to.
@@ClintCoons only on Fannie/Freddie. The reality is most investors are not going to paper quality when you get into multiple unit ownership. The idea sounds nice but it’s just not the majority. DSCR loans are a decent product but the market rents are what truly dictates the final LTV.
@@HPChasers same response I have on Clint’s reply. Now performing a non-owner 2/1 or 3/2/1 temp Buydown on my portfolio product which does allow up to 6% concessions is a much more economical way to go which allows the buyer the privilege of using bank statements or 1 year tax returns to qualify this circumventing the standard full doc paper that most investors just won’t qualify for is in my professional opinion the best bang for the buck. It increases the margin on the rental at the expense of the seller’s money and the points aren’t wasted in a near future sale or refinance. The buyer keeps 100% of the Buydown subsidy regardless of how long they hold the loan.
For anyone watching this video - the banker conveniently skips over the main caveats of each loan type that makes them less common and not that attractive. DSCR loans - first, expensive, as already pointed out in the video, but the main thing right now is that they typically include 3+ years of prepayment penalty making potential refinancing costly. With market expecting interest rates to go down - most investors don't want to lock in 8%+ interest rate for 3 years when there is a chance that you could refinance at ~6% within 1-2 years. Assumable loans - you can only assume the outstanding balance. If the seller bought a house 10 years ago and repaid half of the mortgage + the house price double since then, you would only be assuming a loan for 25% of property's price, so you still need another loan to cover at least another 50%. It's rare for assumable loan to work because the seller must have bought the property fairly recently (~last 5 years) and the price needs to remain fairly close to what it was when the seller bought it. But if that's the case, the seller would mostly be taking a loss on the house (because they pay 6% broker fees to sell) so this happens rarely.
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if you assume a va loan the seller is indeed still liable for that loan unless it is assumed with a va loan also and the buyers entitlement get exchanged for the sellers entitlement .. also i have have many people tell me that the fha loan assumption will still be liable to the seller also ............
Great content Clint - thanks!
Glad you enjoyed it!
Hey Clint. This is pure gold. Listening to Q&A back and forth is so educational. Thank you
Glad you enjoyed it!
Hi Clint, this is.great information! I need to scale my real estate investments. How can I talk to him about this DSCR Loans or strategy to acquire more properties? Thank you
His info is in the show notes.
Great video, very informative.
Thank you!
The “builder forward” commitment you’re speaking of can be performed by any buyer. It’s just seller concessions. The builder is packing the costs of buying that rate down into your sales price. It’s nothing special and every investor does this if it makes dollars to sense todo so.
Not quite. Say you are buying a 400k house and you wanted to buy down 3 pts. I think that would be 12k. The seller could not do this for you because it is 4k above the 2% concession limitation unless I am missing something.
Please remember that investor loan concessions are limited to 2%. The builder forward allows the builder and developers to contribute far beyond that as Clint alluded to.
@@ClintCoons only on Fannie/Freddie. The reality is most investors are not going to paper quality when you get into multiple unit ownership. The idea sounds nice but it’s just not the majority. DSCR loans are a decent product but the market rents are what truly dictates the final LTV.
@@HPChasers same response I have on Clint’s reply. Now performing a non-owner 2/1 or 3/2/1 temp Buydown on my portfolio product which does allow up to 6% concessions is a much more economical way to go which allows the buyer the privilege of using bank statements or 1 year tax returns to qualify this circumventing the standard full doc paper that most investors just won’t qualify for is in my professional opinion the best bang for the buck. It increases the margin on the rental at the expense of the seller’s money and the points aren’t wasted in a near future sale or refinance. The buyer keeps 100% of the Buydown subsidy regardless of how long they hold the loan.
@@theloanslayer we offer all of that too. Still doesn't beat a conventional Fannie Mae 30 year fixed nothing does. Also, nice to meet you.
Hi Clint
How are you?
Do you have a suggestion
For protecting the equity
In a house that has a reverse
Mortgage. ?
Thanx
Sorry not sure on that one because the bank already owns the equity so I am not sure what else to do.
This is good but what if rental market volatile out of control? This is more like higher leverage in 2008 when subprime started. Gotta be careful
For anyone watching this video - the banker conveniently skips over the main caveats of each loan type that makes them less common and not that attractive.
DSCR loans - first, expensive, as already pointed out in the video, but the main thing right now is that they typically include 3+ years of prepayment penalty making potential refinancing costly. With market expecting interest rates to go down - most investors don't want to lock in 8%+ interest rate for 3 years when there is a chance that you could refinance at ~6% within 1-2 years.
Assumable loans - you can only assume the outstanding balance. If the seller bought a house 10 years ago and repaid half of the mortgage + the house price double since then, you would only be assuming a loan for 25% of property's price, so you still need another loan to cover at least another 50%. It's rare for assumable loan to work because the seller must have bought the property fairly recently (~last 5 years) and the price needs to remain fairly close to what it was when the seller bought it. But if that's the case, the seller would mostly be taking a loss on the house (because they pay 6% broker fees to sell) so this happens rarely.