Can you clarify? They will not allow you to cash out your 401K for a down payment, they will not allow you to take a loan against your 401K for a down payment or both?
In all honesty, if they are not allowing you to cash out your 401K, it's probably a good thing for you since you would have to pay tax penalties on it.
If you can, the best thing to do is take a loan out against your 401K. This way you're not hit with the tax penalties, your money is still working for you & depending on the loan program, (FHA, VA, USDA) the terms of the loan do not need to be counted against your income.
Please feel free to contact me for more information or help.
Senior Mortgage Banker
Peoples Bank & Trust Co.
With 3 & 4 unit properties, FHA requires them to be self-sufficient. This means that the maximum mortgage dollar amount is limited so that the ratio of the monthly mortgage payment, divided by the monthly net rental income, does not exceed 100 percent.
So you take the net rental income from the appraiser’s estimate of fair market rent from all units, including the unit you will be occupying, less the appraiser’s estimate for vacancies or 15% (whichever is greater). That amount can't be less than the monthly housing payment (principal, interest, taxes, insurance, mortgage insurance, and HOA fees, if any). If that amount is less than the monthly housing payment, then a down payment greater than 3.5% would be needed (to get that amount to no less than the housing payment).
FHA also requires 3 months PITI in reserves (cannot be gifted).
For 2-units, the "self-sufficiency" requirement & 3 months PITI in reserves are not applicable.
Qualifying income is different though, qualifying income from the rents can only be used if they are actually rented out, and of course the unit you will be occupying cannot have it's rental income help qualify either.
Shane Milne | Lending in all 50 states | NMLS #81195... more
There seems to be a bias towards the south and west areas of Torrance. Please note there are perfectly fine (and highly rated schools) in the northern and central areas as well. As Katherine mentioned, check out the website Great Schools for more information. Be cognizant (as Tony mentioned) of the areas east of Western Ave that contain a Torrance post office address (usually 90502, but there are others), but do not utilize Torrance's city services (e.g. police & fire departments, water/sanitation, schools, etc.). Depending on where the address is, it could be considered Gardena, Harbor City, Lomita, Harbor Gateway, etc...all of which use City of Los Angeles' services. The only zips that are actually "Torrance" are 90501 (east), 90503 (central/west), 90504 (north) and 90505 (south)
My personal feeling is residential real estate (specifically single family homes) is unjustly inflated in price once you head west of Hawthorne Blvd, which I like to call the incorrectly perceived educational "divide". You're paying a premium to live in a house/neighborhood for elementary/middle/high schools that are rated a 9 (west of Hawthorne) versus an 8 (east of Hawthorne). Not really worth the extra expense for that extra point, IMHO. As it is, it's tough enough to find affordable housing in the South Bay for a typical family!... more
What type of refinance are you interested in? Are you interested to see if you qualify for Short Refinance with principal reduction?
Sheryl Arndt, Real Estate Broker – Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
A swap would be unlikely. What are the chances that a mobile homeowner in Torrance wants to move to Vegas at the same time that you want to move to Torrance. Then you would have to figure out the difference in values and deal with that.
I agree with Dennis, just sell yours and buy one in Torrance.... more
I agree with you, investots are "all in" in this buyer's market while owner occupant buyers are on the fence.
Rates are very attractive, but still we have buyers on the fence. I think some buyers who have written offers and lost to investors are simply becoming dis engaged to the process.
I have had buyers who are just plain unrealistic about their purchasing power. They have a hard time looking for homes that they actually have a chnace at buying. They want the home with the stainless appliances, new windows, built in BBQ and thewhole works. They can not see the hidden
Yet, others are not too secure in their current jobs and fear buying a home now because layoffs are looming.
The best thing we can do to help is to continue to put as much positive ecomonic news both in and outside of the real estate market as we can. Most people would love to own rather than rent. But if they are fearful the can not move.
Kawain Payne... more
I have had a lot of success from Trulia. For me it's probably the best lead generating site to date. From my experience the leads that pick up the phone and call me are the ones that I typically have success with. You have to have the right personalty and skill set to convert that lead into a client and ultimately income. Maybe your listings are not enticing or need more pictures, I have no idea just saying, you asked... more
I believe it is a matter of taste. Most corner lots are a tad bigger and often offer the possibility of a circular driveway that might not be possible on interior lots with a small frontage. On the other hand a corner lot can experience some extra traffic. On the end I believe it is the house and the price (value) that determine if a buyer is choosing the home.... more