I am buying a property at 60% of ARV. It needs minor repairs, mainly paint and carpet. I usually buy sub2 and this is the first property I buy conventionally aside from my residence.
Now since I have to come up with 10% down plus closing costs I was going to use my Line of Credit. My mortgage broker told me however, the underwriter will want the funds borrowed to be secured and line of credit would not work.
An alternative was to sell my car rather than trade it in and buy new car on finance then use the money from selling my car towards the downpayment but my mortgage broker again said this may not work.
My mid credit score is 761, I am going full doc, and my yearly income is much more than the price of the house to begin with.
Other than going after private money, how can I make this work?
Your broker is mistaken. All that needs to happen is that the new debt needs to be factored in to your DTI. Meaning that since you are borrowing the money from your equity line, your payment is going to increase. Whatever the new payment is has to be figured into your debt. It should be very simple.
can you take the property subject to and then refi it with the low LTV? Get the title in your hands man, then refi it. Your mortgage broker shouldn’t have a problem with a 60 LTV refi, if she does she’s a newb.
I just got a 95% NOO loan plus closing costs on $85,000 from Coldwell Banker. Brought $5,300 to closing. Had $9,000 in savings and that was enough for them. 700 FICO and full Doc. They are our there, I try to get 3 quotes from different lenders everytime.
When you say “just got” when exactly was that because I contacted Coldwell Banker and they were unaware of such a program. They quoted me a 90% program.
Keep us updated on that 95% loan. There were some 95% loans up till about 3-4 weeks ago. Chase and Heartland both had this.
We just got a new lenders list and several lenders popped up that may offer this.
Not that this is the case, but sometimes a broker can slip one past a borrower or lender by doing a loan as a 2nd home or primary. I’ve looked at people’s applications before and showed them clearly why they got the type of loan or rate they did.
Ben is not suggesting you do that, he is only saying that it happens. I had a customer last year that I worked at getting qualified for a jumbo spec home. While I was working on it he all of the sudden said “I found another lender and he already has me approved and ready to close”. Come to find out that broker just switched it from investment to second home and viola approved.
I just got off the phone with Coldwell banker and they informed me that the 95% NOO loan is no longer available. 90% NOO is as high as they will go. My loan was in process as they were changing the guidelines.
Sorry for getting anyones hopes up. I just found out this afternoon.