Can anyone do 100% financing on a NOO, investment property with FICO at 652? Credit is in the process of being updated by Rapid rescore due to an error of one 1x30 on mortgage payment in Nov. of 05’. The loan amount is $550,000 and $500,000, SFR. Assests are $420,000 in checking and savings account.
I cannot believe that noone has responded. This issue was discussed in detail http://www.reiclub.com/forums/index.php?board=26;action=display;threadid=12019
I had an issue with this with an investor that closed last week. The lenders I use could only go upto 95 ltv. Some even allow a 3-6% sellers concession.
Have you found anyone to help you do this loan yet?
In a lot of cases you will only be able to finance 95% for investment UNLESS the property is cashflowing in which case you can finance 100%. The formula used to determine if the property is cashflowing (at least with my lender) is this.
Market rent x number of units x 75%= monthly income
subtract your mortgage payment from that number and you will know if you are cashflowing or not. Most of the time the properties are not cashflowing using this formula.
If anyone knows of a lender that uses a more flexible system let me know. This was used by my current and previous mortgage companies.
if you have a 30 day late in the process of being fixed you’re credit score will be jumping shortly…100% financing would be more than attainable.
I agree that if you can wait for your Rapid Rescore to be completed that may be best. It would open up opportunites with more lenders. Rates would not very greatly with the increased scores, just changes in the guidelines for qualifying.
If you can’t wait, then you could still potentially qualify for 100%. Main question, is this is a purchase or cash out? Assuming this is a purchase.
The 1 X 30 on the credit would need to be an exception.
Several other questions really need to be addressed in order to see if your loan could be placed.
90% is easy for that credit score
100% in your case is not too tough. The 1x30 needs updated and then your loan is a slam dunk.
How many units & where is the property located?
100% should be no problem.
As stated earlier, with new score - 100% shouldn’t be a problem, I wish all my clients had those kind of reserves.
Is it multi fam? Are you renting it out? Flipping?
We are doing similar deal right now, 100% noo, sfr, $425k loam amt, stated.
Were are rehabbing and flipping. 90-120 turn around. Rates aren’t great, but no PP. It works. EZ loan.
You should be able to find it. Best Wishes.
If you haven’t got this squared away send me an email and we can discuss it further, we have a program that fits those parameters.
Here’s a few sure lenders for you…
Where are you located, i’m in the Michigan area.
I do a lot of 100% NOO stated deals, but most lenders that I work with have been tightening up guidelines, and I do not know of anyone who will do it if the crdit score is below 660. If you have any luck, please post the lenders you find, but not speculation, I am only looking for who can actually close the deal.