Michael, Home Buyer in Brooklyn, NY

I make 70K a year and have a credit score in the 700s and have $600 a month in student loan payments. Chase bank pre-approved me for a $250,000 loan

Asked by Michael, Brooklyn, NY Mon Apr 23, 2012

on a multi-family house in Brooklyn, NY. When I spoke with a real estate agent, she told me that Chase is extremely conservative and that I could get approved for an FHA loan in the ballpark of $425,000 because I can include projected rental income when applying for a mortgage. Is this real estate agent speaking the truth? What lenders will offer me a loan this large? Who do I talk to for more information? I am a first time homeowner looking to get a 3.5% down mortgage.

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CELL: (646)470 3555
0 votes Thank Flag Link Tue Jul 31, 2012
Good Afternoon Michael,

When you are buying your home, get a referral to a Local Mortgage Banker.

Mortgage Bankers in your community will provide you with a much higher quality of service and financing options than any "Big Bank." Local Mortgage Bankers have long been the source of excellent financing options for homebuyers. Further, Loan Originators who work at Mortgage Banks are LICENSED whereas Loan Originators who work for the "Big Banks" are only REGISTERED. There's a BIG difference.

Sit down face to face with your Mortgage Banker to be thoroughly prequalified. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

Consumers have been led to believe---thanks to huge advertising budgets with the BIG BANKS---that they should go to their bank for a mortgage loan. This is the WORST place to get assistance with the BIGGEST PURCHASE of your life! These BIG BANKS are basically BIG CORPORATIONS. You're a number, at best. With a Local Mortgage Banker you will be treated like a friend and a client for life. You can't imagine the high quality of personalized service you will receive from a Mortgage Banker until you try.

As to price---rate and fees---competitive if not better than the BIG BANKS.

You can verify the License of any Licensed Mortgage Loan Originator at nmls.consumeraccess.org

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Thu Jul 12, 2012
If your credit score is high enough to qualify for an FHA loan (640 i think), it doesn't matter if it's higher than that.

I think you could get approved for a lot more than $425k.
0 votes Thank Flag Link Tue Jun 26, 2012
Good morning Michael,

Your Realtor is correct up to a point. While the FHA program allows for the use of projected rental income to qualify, recent changes in Underwriting standards have made it more difficult to allow the inclusion of rental income for qualifying purposes.

I am a Local Mortgage Banker with 22 years experience helping First Time HomeBuyers in Brookyn and the NY Metro area. Please contact me to set up a free, thorough prequalification appointment. My information is on my Trulia profile page.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Sat Apr 28, 2012
Forget it, that was yesterday, today the banks are not lending the money so freely. You should look into a mortgage Broker. They will be able to get you financing that fits your financial profile. And just for your information the milti family houses in Bed Sty are above the $500k range now.
I work as a Buyer Agent, please contact me if you need more assistance.
Thank you.
Good Luck.
0 votes Thank Flag Link Tue Apr 24, 2012
Different properties may require different financing options:

Multi-family may qualify for FHA - but this needs to be checked (including how many units are in the property) with 3 types of lenders. The large banks might have very competitive programs and lower closing costs, but they are also the most conservative. Mortgage bankers will have the widest variety of programs and can work with you on a more "human" level - unlike the large banks.
Credit unions or smaller local banks might finance something that others won't, and their fees are very low. You don't have to have your credit pulled 3 times though - this would reduce your credit score. Ask for Good Faith Estimates (GFE) from all lenders.

By the way, rental income will be included in your loan calculation, with the vacancy rate per underwriting guidelines of each lending institution. In many cases, it is 75% of gross rental income.
However, reserves might also be required, and you may want to have "unexpected repairs" fund before you purchase any multi-unit property.

Best of luck,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Tue Apr 24, 2012
If you're looking to put 3.5% down AND you're a first-time homebuyer then FHA is definitely your way to go. Approval will be determined by income (which looks good), credit (which looks good), debt-to-income ratio ($600 student loan + any revolving credit card minimum payments compared to your monthly income), and loan-to-value (amount of loan compared to value of home). It would take me all of 15min to let you know where you stand and which option looks most financially sound. I'll be in the office until 6pm so please shoot me an e-mail if you wish to discuss matters further, pmarzolla@unvmortgage.com

0 votes Thank Flag Link Tue Apr 24, 2012
The listing agent might be right, but they don't know enough about your financial situation--I hope!--to give you any clear guidance.

Because the listing agent is working for the seller, not for you. Any information you give that listing agent will be used against you, to get more money out of you. That is the selling agent's fiduciary responsibility to their client, by law.

So work with a mortgage broker to find the best mortgage deal (there are plenty of such people here) and find a buyer's agent to represent your interests as you view properties. Any agent ("broker") can act on your behalf, but require that agent to present a Disclosure form that shows the agent as a *Buyer's Agent*. You'll be glad to have an agent representing you when it comes time to negotiate.

Karla Harby
Licensed Real Estate Salesperson
Rutenberg Realty
New York, NY
0 votes Thank Flag Link Tue Apr 24, 2012
Hi Michael, you can actually get more money if your property has a rental attached to it. I'm in the same boat, 70k a year looking for a multi-family in Bedstuy my credit isn't terrible but it isn't great and I had a mortgage broker tell me today that I could get approved for a 2 family at $585k with an FHA as I would be a first time home buyer. Keep looking and keep talking to that broker and see if she knows of anyone.
0 votes Thank Flag Link Mon Apr 23, 2012
Dear Michael:

The banker may be right. There are many factors that come in to play such as how much money you have to invest in the deal yourself. Your best bet would be to go to 3 or 4 additional mortgage bankers, shop around and get yourself pre-qualified and see what they all have to say. This way you will know exactly what you can do.

If I can be of further assistance, please let me know. Good luck!

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Mon Apr 23, 2012
Hi Michael
you need to either call back the person at chase that gave you the pre-approval or send me your direct email and i will give you a person to speak to directly.
0 votes Thank Flag Link Mon Apr 23, 2012
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