Real Estate Q&A

Option 1: Rent it out and refinance it to get your money back out. That way you get your money back out the deal without paying capital gains.

Option 2: rent for at least a year, then sell. Your capitol gains will be lower.

Option 3: Rent it out then live in it for at least 2 of the past 5 years. Then sell it with the capitol gains tax exemption.

HELOC (Home Equity Line of Credits) should only be used if you have a plan to BRRR out of your investment to pay your HELOC back. In other words, you will have to buy the new property with enough equity to refinance it later and pay off your HELOC.

Pros

• Sometimes there are no closing costs.

• Typically a quicker process than purchasing a rental with a mortgage.

• Can be used as a down payment so that you can keep your cash in your savings account for a rainy day.

• While you have to make monthly payments, you can keep taking money back out. So it's like a credit card you can use for 10 years.

Cons

• The interest rate is variable and can change every month. One month it can be 3%, and the next month it can be 19% depending on your terms.

• If you are not good with finances, you could end up losing your house.

• Finished square footage that is above grade

• Square foot of the house

• Comparable houses in the area

• Level of repairs (whether the home has been updated)

• Number of bedrooms and bathrooms

• Year the property was built

• Last 30 days of sales in the area

With the prices of homes sales increasing, mortgage rates low, and rent prices declining, what can that mean? Well, there are a couple of things to consider.

What was 2008 like?

• Many home owners lost their home because of the 2008 housing crisis because there were no government bailouts, and they oftentimes didn't have the option to place their loans in forbearance or refinance their mortgages with the option to add their payments to the end of their term.

• Banks were loose with their lending policies, making it easy for almost anyone to get a loan. They saw housing prices going up, and up, and thought, well even if a person defaults, they can always sell the house for even more.

How things are different than 2008?

• Eviction moratoriums are in place to keep renters in their home. However, smaller landlords may not be able to cover their mortgage if renters don't pay. This may lead to an increase of foreclosures on small time landlords who only had 3-6 months savings, especially if the eviction moratoriums last well beyond that 3-6 months time span.

• Banks do not want a repeat of 2008, and neither does the federal government. So they are more willing to think outside the box.

• Banks have tightened up their lending policies. In addition to more strict policies that they have implemented over the past 10 years, they have even greater restrictions because of COVID. For example, in February 2021, Bank of America reduced HELOC Loan to Value ratios from 85% to 75%. In addition, they are not processing and HELOC refinances or giving out any new HELOCs unless your original home loan is with Bank of America.

• The Fed is keeping interest rates low to encourage people to continue to purchase homes and stimulate cash flow in the economy. Nonetheless, homeowners are staying put for a couple of reasons. First, if they sell their home, the market is so competitive so the cost of buying a new home is too steep. Second, millennials and Gen Zs are back at home because of school closures and remote work policies. During this time, it makes more sense to stay at home in a safe bubble with family, than live in an expensive apartment which not a lot to do because of COVID social distancing restrictions. So now millennials are aiming to hang out in their parents house for a little while they save up to purchase a home of their own. Smaller cities are seeing an increase in population as people are leaving the crowded cities because of COVID.

For each landlord, it varies. Sometimes bigger apartment complexes have so many units, that they can be more flexible than smaller landlords. Here are some of the minimum qualifications that you may see:

• Income must be 2-3x the rent

• All occupants 18 years or older must complete an application and pay the application fee

• Last 60 days of Pay Stubs

• Last 60 days of Bank Statements

• 3-6 months savings in the bank

• Must have 1 year at the same employer or 2 years in the same field ow work

• Minimum 650 credit score (based on the average of the 3 most common credit reports)

• No evictions in the past 7 years

• Can't be a sex offender (check to see if it's a protected class in your area).

• Housing voucher accepted as form of income

• Co-signer needed if you can pass income and credit check

• Background check showing no violent crimes (check to see if it's a protected class in your area).

• Credit Report should not show frequent instances of nonpayment

• Prior Landlord References

• Personal References

• No possession, consumption, manufacturing, or cultivation of recreational marijuana or marijuana products

• No smoking allowed inside the home

• Late rent fee

• Pet Policy

• Some of my real estate investing friends are getting out of the game. And I understand why. I had a property where I had a renter on a 2 year lease. On average I make around $200 - $300 a month on rental properties. The renter decided to move out 4 months early (and right before renter at that. This is the hardest time to find renters because no one wants to move during the holidays. Most people want to move when its warm or in the summer time, when their kids aren't in school. Also, showings end up getting cancelled because of snow days. It's frustrating; believe me I know). So for the 20 months that she was there, lets say I earned $250 a month in cash flow. That's a grand total of $5,000 in cash flow. Well guess what I loss:

  • Around $5,000 in rents for the 4 months the property was vacant because of her early move out.

  • $3,000 in damages because she had a fire in a house, took the smoke detectors, left trash, etc.

  • $400 to get a new Lead Inspection in preparation for a new renter

  • $150 for a new rental inspection in preparation for a new renter

  • And then because we are in the new market and the property wasn't getting a lot of interest, I did around $5,000 in upgrades to the property.

  • So lets say that the $5,000 in upgrades, the $400 lead inspection, and the $150 rental inspection is something that I already would have done before a new renter moved in, there are still outstanding costs. [Theoretically just with upgrades and the new inspection, if she would have paid her rent for the entire 2 years (and not caused damage to the property), with the $250 monthly cash flow x 24 months = $6,000), I would have profited $450 for the 2 year period. That's a whopping $18.75 per month over the 2 year period. Hopefully, the $5,000 in upgrades bring in higher rents, because all that work for $18.75 a month, is not for me.)

  • $5,000 + $3,000 = $8,000 in losses (plus other losses related to the early move out.)

  • In addition to that lets add legal fees to hire an attorney to recuperate those losses. Well that can start at $3,000 - $5,000+.

  • So although I made $5,000 in cash flow, I lost $8,000 just by renting to this renter.

  • This is why owning rental property can suck.

  • Now, if my attorney comes through and I recuperate the lost funds, then I have some money back, but still dealt with the headache. But say, off of a technicality I lose the case, then I'm out over $10,000+. Welcome to the glamorous world of real estate investing.

    • The only way to recoup my money is by looking at the long term game plan:

      • Long term Game plan 1: Cross my fingers and hope that Housing Market Appreciates a lot, so that I can sell it for a profit.

      • Long term Game plan 2: Hire a good attorney and a good property manager and continue this process for 30 years to help pay off the mortgage. When I get to retirement age, instead of netting $250 a month from cash flow, the property would have been paid off over the years. I also would have kept it updated. Once the property is paid off in 30 years, I'm only paying property taxes on it. That $250 monthly cash flow, should increase to at least $1,000 a month (conservatively). Which means I can profit $12,000 a year to go towards my retirement lifestyle. I also would still be able to sell the property in the future if I wanted to (and if the market hasn't dipped.)

• Email thelegacyqueen@gmail.com

As a real estate investor, we are constantly told to not own property in out name. Some people advise that RE investors transfer their investment properties to an LLC. The biggest issue with that is the Due on Sale Clause.

Many mortgage companies have a clause in your mortgage documents (that you signed at closing), that if you transfer ownership of property, you need to pay the entire mortgage back in full. Here are 3 things to consider:

1. Mortgage companies have a lot on their plate. For the most part, if you are still making payments on time, they won't bother you.

2. If a mortgage company does tell you that you triggered this clause, oftentimes, you can explain to them that you are transferring it to an LLC and you are the Single member running the LLC. They may ask for documentation and an explanation letter. That may be enough to satisfy them.

3. A third option is to get Due on Sale Insurance. There are insurance companies that will say, if your lender calls the mortgage due, they will pay off the lender and take 1st lien position. Essentially, instead of paying your lender back, you will now pay your monthly mortgage payments to the company who you have the Dual on Sale Insurance with (or whatever partner company they use.) The exact terms of the Dual on Sale Insurance policy will vary, so make sure you reach out to them directly to learn more.

• Lemonade

• Equity Assurance

  • If the due on sale clause gets called Equity Assurance is a Company that will utilize its resources in one of three ways:

    • 1) Equity Assurance upon your request, can contact the lending institution and inquire about the desire of the lender to enforce the provision if the payments, insurance and taxes are current. Equity will work to resolve this issue so you can continue working with the Mortgage servicer.

    • 2) Equity Assurance can utilize its capital pool and investor pool to buy the mortgage and have it assigned to Equity Assurance whereas the terms will remain the same.

    • 3) Equity can offer the outstanding mortgage and note on the secondary market.

Bonus: Are any of your loans backed by Fannie Mae? Fannie Mae now allows you to transfer title to a single member llc, after financing personally: (Link to more info)

Fannie allows a transfer of the property to: a limited liability company (LLC), provided that

• the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and

• the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).

• Every year things get more expensive. On average around 2.47% more expensive. In addition to appreciate based on neighborhood factors (e.g. new playground, Shopping center coming to the area, etc.), home value also go up. From 1967, the average inflation rate of a houses was 4.16%. Based on these averages, if you had $100,000 in a savings account last year, it would be worth $97,530 this year. But if you bought a house for $100,000 last year, it would be worth. $104,160. This is why the rich buy houses.

• Well think about it. The rich and powerful are able to influence legislation in a way that the poor and middle class cannot. There are so many tax benefits to owning real estate, because the rich and powerful own real estate and use it as a way to pay less taxes. So what are some of those ways:

  • Depreciation - Property 27.5 years, Capitol Expenditures (eg. 5-7 years), Repairs (year in which is was paid for); Cost segragation

    • Example: Instead of taking a $35,000 deduction in 1 year, you can divide it into 7 years, so that for each of those years you are only deducting $5,000. This is helpful if you think you are going to be earning more in the future.

  • Bonus Depreciation (if you bought a property in between 2017 and 2023)

  • Principal pay down from Rents Received

  • Pass-through deductions (from expenses and passive losses, etc.)

  • 1031 Exchange

  • Capital Gains Tax Exemption

  • Homestead Property tax deduction

Renting to international students can be confusing. With no social security number how can you screen them through a Credit or background check. Sometimes a credit check will show a history of the renter not paying on time or at all. A background check can reveal previous evictions and also violent felonies that you would otherwise have no idea about. Other concerns are that collecting a past due balance for renters who skipped out on the rent or caused damages can be difficult because domestic debt collection agencies are readily able to collect debt from international accounts or updated contact information.

Here is an option for responding to international students when they ask about the application process.

For international "Students" without a social security number, it will be harder to rent because we can't do a credit and background check. For that reason, in addition to your application you would need to be able to pay the rent in full or (possibly partially) upfront. In addition to the application, since we cannot do the credit/background check, we will need the following documents in support of your application:

• Copy of your ID (identification)

• Copy of your Student Visa

• Transcript from GWU/Course Registration for upcoming school year

• Last 60 days of bank statements showing your ability to cover the rent.

• Last 60 days of paystubs (if applicable)

• Copy of a background check from your home county --- Or Landlord Verification from Previous landlord.

• Completed Financial Certificate from your college (see example below)

  • Please visit go.gwu.edu/fincert to obtain a PDF copy of the GW Financial Certificate.
    Use the references below for examples of a completed Financial Certificate:

    • Sample Financial Certificate with Government Sponsorship

    • Sample Financial Certificate with Parent Sponsorship

    • Sample Financial Certificate with Scholarship

    • Sample Financial Certificate with Self Support

For International residents who are not student you can collect additional documentation like:

• Copy of Identification (a passport or state-issue identification)

• Copy of Permanent Resident Card (a.k.a. Green Card)

• You can still do income verification and ask for things like:

  • Pay Stub, Official job offer

• Financial Information

  • • Last 2 months of bank statements

    • Their Form 1040BR - which is the US Nonresident Alien Income Tax Return form

• References from Previous landlords

Other ideas:

• Credit card authorization form that gives you permission to charge the credit car for skipped rent or property damage.

Although we can't offer additional thoughts on renting to undocumented immigrants, that is still an option. Technically, there is no federal law which prevents or penalizes landlords from renting to undocumented persons.

• Low inventory

• More buyers

• Low interest rates, encourage more buyers to buy know before the interest rates rise again

• Low interest rates also mean that buyers can afford a higher priced house.

• What is FundRise?

  • FundRise is a website that allows you to invest in other people's deals. 5 year + low liquidity investment

  • Fees

    • • Advisory fee and Asset management fee = 1% - yearly - automatically deducted from your FundRise account

      • Loan Origination fees - 0% - 2%

      • Early Redemption fees - (discourages people from investing if they aren't in it for the long run).

        • None in 1st 90 days; 3% less than 3 years, 2% for 3-4 years, 1% for 4 to 5 years, None for 5+ years

    • Starter portfolio - minimum $500 investment

    • Advanced plans - minimum $1,000 investment

      • Growth orienated aka Asset appreciation

      • Blended

      • Income-orientated aka Income through dividends and distributions

    • Advanced Plus - $10,000 minimum

      • more niche options available

    • Premium - $100k minimum

  • Historical returns after fees - 8.76% - 12.42%

    • 2014 - 12.25%, 2015 - 12.42%, 2016 - 8.76%, 2017 - 11.44%, 2018 - 9.11%, 2019 - 9.47%

    • Quarterly divident distribution

  • Features

    • Automate your investments

    • Automate re-investments to earn compound interests

  • You can invest inthe debt of the project or the equity of the project. If you invest in the debt, then it's like you become the bank. If you invest in equity, then it's like you are investing int he money they need for the downpayment.

• Pros

  • Diversify your long term investments

  • You can get into investing with lower money down.

  • You don't have to be an accredited investor ($200k annual income or $1 million net worth not counting their primary residence).

  • Can possibly offer better terms than a publicly traded REIT. Just do your due diligence on the investment

  • Can be a quicker way to start investing in real estate

  • Allows you to invest in commercial real estate

  • Passive - you don't have to worry about hiring a property manager, or managing tenants.

  • You invest directly into the property, and you see the actual property that you own part of. With a REIT you are only investing into the company as a stock. (But this needs clarifying, because htey also say that when you invest with Fundrise,y ou are acquiring shared of their funds. Those investor funds are put in aportfolio of mostly private real estate assets.)

  • Low fees (1% annually) (ex. versus 10% of monthly rent to a property manager)

  • Allows you to diversify your portfolio as you can invest a little money into different projects.

  • They were started in 2014, and since 2014, they've seen a steady rate of return of at least 8%. (e.g. if your heloc or other line of creid tis 4.75% then it makes money to invest in fundrise to make money on your borrowed money.)

  • Accfredited by the BBB since 2018 - Grade: A

  • LLCs can invest in Fundrise

• Cons

  • They charge penalties if you take your money out of the investment too soon (e.g. before 5 years)

  • Low Liquidity - meaning you can't easily pull your money out. They may after a quarterly opportunity for you to get your money out, but they can suspend that option as they see fit. Ex. During the initial COVID outbreak, the suspended this options because they did not want a lot of people trying to cash out at the same time, which would hurt over investors.

  • There can be some risky investments on the platform, so you really have to do your research and due diligence

  • Dividends are taxed at your ordinary income rate, not at the Qualified dividends rate (15%) (but you can reinvest your dividends).

  • Their rate of return is based on them coming into the market in 2014. However, they haven't been proven in a recession market like 2008.

  • BBB rating of 3.68 out of 5. Here are the customer complaints:

    • Taking too long to receive funds back from redemption request. Their response is that at the end of each quarter is when they send redemption funds back.

      • Everyone who signs up has to accept this disclaimer “I recognize that my investment is in real property, which is fundamentally a long-term, illiquid investment; that liquidations, if approved, are paid out quarterly for the eREITs and Interval Fund, and monthly after a minimum 60-day waiting period for the eFund; and requests for liquidation for the eREITs and eFund may be suspended during periods of financial stress”

    • Issues with their IRA custodian

    • May receive funds back in increments as your invested money is in a portfolio of different investingments and separate legal entities.

    • Suspending all redemption quests furing the height of the pandemic - starting from MArch 2020.

  • Returns during the Ramp-Up phase of the invesement may be lower because theya re just launching and raising funds. However, sometimes ramp-up funds can be purcahsed at a lower price

• Investor Mint Article on Fundrise

• Please feel free to contact Fundrise with questions at any time by emailing support@fundrise.com. We typically get back to our investors within 1-2 business days.

Things to consider including

• personal guarantee lease

• Tenant pays rent, utilities

• Tenant pays for Maintenance and Repairs

• Tenant pays for the difference for the increase in property taxes each year

• Require Business liability insurance

Commercial lease

• personal guarantee lease - makes them legally responsible for rent

  • Personal guarantee with fixed term - eg. 12 months worth of rent upon termination

• commercial lease - makes their company legally responsible

If space is vacant they are still responsible for lease

Types of lease - 5 types of commercial leases explained

• Gross Lease aka Full Service Lease

  • you are responsible for paying base rent. Landlord handles additional building expenses (maintenance, insurance, taxes, building expenses). Tenants may still be required to pay their proportionate share of utilities.

• Net Lease

  • Tenants pay rent and utilities plus a proportionate share of buildings operating expenses (CAM common area maintenance, property axes, insurance etc.)

  • "Bondable" net lease - means that it cannot end before it expires, nor can rental costs be updated.

  • Types of Net Leases

    • Triple net lease - tent pays rent, utilities, and property operating expenses (including maintenance fees, building insurance, property taxes). Typically, triple net leases have a longer term and concessions for rent hikes written into the lease.

    • Double net lease - net net lease- tenant pays rent and utilities and taxes and insurance. However, landlord pays directly for buildings structural maintenance expenses.

    • Single net lease - tenant pays rent and utilities and property taxes. Landlord takes care of building insurance and maintenance expenses

• Modified Gross Lease

  • Details vary from contract to contract. It's the middle ground between gross lease and triple net lease

  • Tenant pays base rent, utilities, and a portion of operating costs.

  • In some cases tenants may pay a pro-rata share of the buildings operating cost

• Absolute NNN Lease

  • In an absolute NNN lease, the landlord is absolved from all responsibility for the buildings expenses in every case (including any maintenance, repairs, roof or structural issues). This is typically a long term lease offered to nationally or regionally known tenants with excellent credit.

  • not the same as triple net leases - where sometimes the landlord may chip in for structural repairs.

• Percentage Lease

  • Tenants pay rent and utilities, and tenants also pay a percentage of their gross sales (once pass a threshold) to the landlord

  • Primarily used in retail

HOW COMMERCIAL LEASES DIFFER?

• Resource - NOLO - The Commercial Lease: What You should know.

  • Fewer Consumer Protection laws

    • No caps on security deposits

    • no rules protecting a tenant's privacy

  • No standard forms

  • Long Term and binding = its a legally binding contract

  • Lease is subject to negotiation between business owner and landlord

Resource: How to Rent Your House to Corporate Housing?

Be prepared to pay to lock your rate or buy down your rate if you think interest rates are going to continue to rise.

Only refinance if you need to pull out cash so that you can increase your investments and future wealth potential. If you do need to do a cash-out refinance, make sure that your rental income/revenue can cover your new monthly payments (mortgage, PITI, Cash reserves for repair, Cash Reserves for Vacancy, Cash Reserves for capital expenditures, etc.). Ideally, you should still have some cash flow.

Ask your lender for any credits they can give. The worst they can say is no.

Ask the seller for concessions to help with closing costs. Any money saved is great, at this point.

If you are an investor, it doesn't matter it interest rates are 3% or 30%. The only thing that matters is the cash on cash return and if that property will cash flows monthly. Regardless of the interest rates, will rents cover the monthly property expenses and then give you cash flow.

• Because of lower interest rates, you can afford more house.

• Refinance your home into the lower interest if paying closing costs again makes sense.

• Buy as many cash-flowing properties as you can with that lower interest rate. The key is that the properties should still be cash-flowing.

• Consider using hard money or private money to BRRR or Flip properties. If regular mortgage interest rates are lower, then hard money rates should be lower as well.

• Save more money for your down payment and closing costs

• Partner with a friend or family member to buy a home together

• Work with a down payment assistance program

• Increase your income by working multiple jobs or applying for new jobs with higher salaries

• Readjust your expectations regarding the type of size of house. Maybe you can't afford a 3,000 square foot home just yet. Maybe its more financially responsible for you to purchase a 1,000 townhome or condo first.

If you want to sell your home soon, then you should be afraid if the housing market crashes and property values go down. If you are not looking to sell your home soon, then there is nothing to worry about. Every market has a cycle of ups and downs. What does up, normally comes down. What goes down, normally comes back up.

If you don't own property and the housing market crashes, LUCKY FOR YOU! Be prepared to buy a new property at a lower price.

If you own property and the housing market crashes, unless you absolutely NEED to sell, DON'T! Instead of selling, here are some ways to cover your monthly mortgage payments without having to sell your property at a discount.

• Rent out the property in full. (If people with good credit and great income will be afraid to buy if housing prices are dropping. Their fear is that if they buy, the property will be worth less than what they paid for it in the future. Therefore, they will stick with renting. Since more people will prefer to rent (aka more demand), then rent prices will increase.

• Rent out by the rooms. (Affordable rent is and will continue to be an issue in America. Some people can't afford a $3,000 rent payment for a 5 bedroom. But they can afford a $800 bedroom in that same 5 bedroom house. Rent out each room for $800 x 5 rooms = $4,000 a month in rental income).

• Short Term Rentals (e.g. AirBnB, VRBO, furnished finder, etc.). (You need to check out your county regulations regarding short term rentals. In some counties, you can only do short term rentals if the property is your primary residence. Therefore, in these areas you can still rent out a part of your home like a room or basement, or you can rent out your whole home, but there may be a limit to how many days per year you can rent out your whole home.)

• Group Home. (Some housing agencies are looking for homes for veterans, foster care homes, or homes for people with developmental disabilities.)

• Corporate Rentals. (Some companies still need to host their employees who are in town and renting a house at a monthly

• Insurance company rentals. (Some insurance companies reach out if they have a client who's house burned down, and they need a place to rent while their house is being rebuilt.)

• Rapid rehousing. (Some agencies are looking temporary <1 month - 3 month> housing for displaced families.)

• If none of these options work, the main thing is figuring out ways to increase your monthly income so that you can cover the monthly mortgage payments while the market is down. There's an unlimited amount of ways to do that.

Costs of Not

• Liability

Yearly Costs of Putting a property into an LLC

• LLC Formation fee

• Annual LLC Filing fee

• Cost to file tax return for LLC

• You may have to hire an attorney to represent your LLC if you plan on taking a tenant to court.

• You may have to register as a licensed property manager in your county since the property is now owned by the LLC, and not you.

Potential Risks

• Due on Sale Clause

Each property should be in an LLC

Put Property LLC's under a Living Revocable Trust

• Trustee should be an unbiased 3rd party

• Beneficiary

  • You (the entrepreneur)

  • Secondary beneficiary - your heirs or family members

• Down-payment Support Program

  • Help you reach the 20% down payment mark (so that you don't have to pay PMI, you have a smaller monthly mortgage, and you can make a more competitive offer) - Landed | Info Session

    • Buyer brings: 5% of downpayment

    • Landed brings: 15%

    • Downpayment is not a loan so it doesn't collect interest.

    • And it's not a grant, so you still have to pay it back.

    • It's a shared investment

• Additional supports

  • can match you with Real estate Agents and Lenders

  • Landed Home Buying coach

• What's the catch?

  • Shared equity

    • So if the value of your home goes up, then when you sell or refinance, you have to pay a percentage of the equity (ex. 25% of the gain would go to landed, in addition to the cost of the loan)

    • If the value drops, you pay out the original investment, minue a % of the depreciation

    • Landed Downpyament contrubution and their Sharing Perfcentawge

      • If they give 5% down, then they share in 12.5% of the equity.

      • If they give 10% down, then they share in 25% of the equity

      • If they give 15% down, then they share in 37.5% of the equity.

      • For every 1% of the purchase price that landed invests in your downpayment, they share in 2.5% of the change in value at the time you exit the partnership.

  • You pay them down the line when you end the partnership

  • You have up to 30 years to choose whether you end your partnership. If you end the partnership within 2 years, you have to sell the home to end the partnership.

  • End of partnership - you pay back the initial investment into your down payment, plus or minus a portion of the change in value

• Eligibility

  • *Work with 1 of landed partner real estate agents - (local network of agents they recruited and trained to work in the process with buyer). If you already have an agent, you can choose to work with them, but you will have to pay the fee that gets paid to Landed at Closing which is 1.25% of the home's purchase price.

  • You do not need to be a 1st time home buyer.

  • Needs to be your primary residence for the length of your partnership with landed.

  • 2-year commitment to stay at your current employer

  • Must qualify for a primary mortgage through one of their participating lenders. landed.com/participating-lenders

  • Qualified home types: condos, townhomes, single family homes, or duplexes, new construction.

  • Un-qualified homes: mobile homes, manufactured homes, tiny homes, empty land

  • Area: In urban or near urban parts

• Questions

  • Pre-payment penalty?

  • Investment property? No, this is not for investment properties that are initially set to be investment properties. However, if you move out in the future and turn it into an investment home, that may be okay.

  • Only owner occupied loan? -YES

  • Lien against the house? If so, what position.

  • What happens if buyer defaults against the house?