I was offered a property at $38K that I would like to get 100% NOO financing on. Is this possible? (at meaningful rates) If nexessary, the seller will reluctantly carry 5%.
I have propesive tenant that will pay $625/mo for it if I can get it financed. (taxes + ins = $100/month)
I’ve been looking for the same thing for a long time. I know it’s out there, but haven’t found it. Any time I go below 50 I have to pay 10% down. I don’t know if it would work in your state, but a friend of mine uses a lender who will do seller concessions (on the up and up - in the contract - not outside of close). He uses it to take a 38K property to 50K and gets the difference back at close. I haven’t used the lender yet though b/c his closing costs are higher than my lenders by 1-2k. Don’t know if that helps or not, but something to think about.
If you find a lender who does 80/20 on below 50K, please let me know.
There might be one or two wholesalers that will allow this but they would require the second mtg to be a minimum of 10,000 so the first would have to be at 28k.
I will do some checking and get back to you on Tuesday.
38k is a low amount that most banks/brokers wont even look at… If youre riunning out of options let me know. Well do stuff as low as 30k. NOO will be about 95%ltv.
betajdl
I did find a couple of investors today that will do this loan for you.
The first Mtg at $28k @ 9% and the second at $10,000 at 13.5% and you can ask for up to 2% seller assist.
Couple of questions for you:
What state are you in?
Do you know what your credit score is?
I priced this loan at a 680 Fico Score so assuming you are above that we will be ok. We can finance it at a lower score but you will have a hit to the rate.
I also assumed you were a full doc borrower.
Contact me if you need more info.
Ramona