funding / have to prove downpayment

I was just checking has any one else run in to this

1 ) the loan broker says unless you have a bank account with the downpayment in it i can not get you a loan at all?

And if you have did you find a way around this or just not get the loan ?

As i ran in to this where the broker said if you do not have a bank account with the downpayment in it i can not help you

I had a family member who was going to be giving me the down if i could get the rest of the funds in place on a deal

But this broker said that unless this money was in my a bank account that could be proven then there was no way he could get funding

I told him at the close the seller would have there money as this was going to be payed to the seller and there would be proof of it being done

As well with the loan and the down with a small profit to the seller the old loan would be payed off and there by giving the loan giver a clear title and a first lein

And he still said there is no way none at all

So i would like to have if there is one a answer to this question

As well if any ones knows of a person or loan place that would work with this type of deal

From what you are saying it looks as if you will be using a gift from a family member for the down payment on this house.

Unfortunately you cannot use gift funds on a conventional NOO purchase. as for the rest of your questions I really can’t figure out what you are asking.

YES this was to be gift from a family member

And this was to be a property i was going to move in to

So it would not have been a noo

As far as the rest i was just wondering if any one had found a way around haveing to prove they had the down other then showing bank account information

As what if you do not have a bank account in your name are you cut off from getting funding ?

So if this is a owner living in deal how is this changing as to the family member giftting the downpayment ?

If it is to be owner-occupied then a gift letter will suffice. Your family member will give you a cashiers check at closing. That is commonplace. Your broker may be confused about what your intentions are. You do not need a bank account to get a loan.

THANK YOU

I am sure my broker did not know his /her job as i made everything transperant from the start

He/she said that i had to have a bank account and be able to prove i had the down payment by showing the family member had placed the funds in the said /my account

He /she said that haveing a bank account all so proved i had assets of some kind

And with out i could not get any loan hard money or other wise

i thought a lot of what was said was a bit strange

AS i thought a hard money person did not care if i had a bank account

But only as to the deal and some what to my credit correct ?

If a person had a low fico under the 600 s it would be harder but still

It would not require a bank account correct ?

However just a really good deal with a good down and good equity correct ?

And as a last note here this was a commercial deal that was and is cash-flowing

I was not aware that this was a commercial deal. You said it was owner-occupied. I cannot speak for commercial loans if a bank account is required or not. You also did not say that it was a hard money loan. In the future you might want to make your questions more clear and give more details.

OKAY

A hard money loan was what this broker was going for as he / she said my score was to low for anything else

And second to this he /she told me it was commercial as there was some storage bldgs on the property the sellers had been rentting out

But the home was the basic deal a 3 /2 bedroom / bath deal on a little ove 8 ac

As i said before there were a lot of things said that i thought were wrong at the least not right

This was not a storage business the sellers just rented out some bldgs to people as they were not useing the bldgs

I hope this clears this up for you ?

And i think the broker may have been right about the low credit score thing ?

I think when your score is to low hard / private money may be the only way ?

This just sounds like a regular purchase with some storage buildings on the property NOT a commercial deal. I would suggest changing brokers as this may be a bit more complicated than your normal broker is used to. What is the sales price?

OKAY

The sale price is 800K and i was looking in to a loan for about 500 to 520 K on it

The rest as i said was going to be a gift from a family member and payed to the seller as long as i could get the balance in a loan

And really with low fico i was not looking for a super rate or terms just wanted to get the deal done and was looking at a refi in 24 months

What would be accepted as proof of the gift funds being on the table so to speak when the time was ready ?

Real Estate,

This deal sounds like a no brainer. You are at a 65% LTV. Is your credit score over 600? And can you document your income? The payment will be like 4K per month.

NO the score is below 600 as is in the 500 s

Yes can prove income

I am sure with this low of a score all the good news is gone

Where in the 500’s?

OKAY

I belive it is in the 550 530 s area

I know this is bad and may be even real bad ?

And that really a loan can not be done with this type of fico?

With a FICO that low I don’t know of any lender that will finance this loan. Unfortunately it may be a dead deal.

This is what i thought as well

So you could see where the words of the broker i was talking with gave me hope on the deal

But then to find they really did not know what they were talking about

So you do not think that even a private money loan would work ?

And i would like to put in a word here to all with low scores

Do not think that every loan broker knows what they are doing as this post has proven this is true

AS well is why i have started looking very hard at sub2 as none of the above is of any matter to any one

Just as long as you can some how make / cover the payments you are looking at taking on then you are good

And then if you want you can refi it in 6 mos to a year and work on getting your credit fixed -up

As in the refi your credit is not much of a deal either correct?

A private money loan should work, but as I asked above… Can you afford the payment? If this is owner occupied as you stated above your payment on a low interest private loan will be over 4K per month NOT including taxes and insurance.

YES i can afford the payment as i get a monthly trust fund payment

And it is over but not by much 5,000.00

You are out of luck then. You cannot afford this house.

OKAY

I am not understanding something here if the payment is a bit over 4 ,000. 0
And i have income of a bit over 5,000.0 how is it i can not afford the home ?

And this is just my income as i have my wifes income as well it is not much but it is there as well and it is a about 35,000.00 a year

And i could allso keep rentting out the bldgs the sellers are now this would add more monthly income

If this is to be a private loan then why is there a look to see if i can afford the home or not as the private loan will still have a 1 st on the property right ?

And there for if for some unknown reason i do not make the payment they get a property worth more then there loan amount correct?