Financing question

Financing, Hard Money Lenders, Private Money
1

Hi Everyone,

This is a great website. Many knowlegable people taken their time to answer different questions. Heres mine.

I found a house that was appraised for 107,000. The owner wants to sell it to me for 55,000. About 10,000 in repairs. He bought it for whatever reason over seven months ago and never lived in it. I do not have perfect credit. Fico below 600. Live in Northern Mississippi. Any suggestions on how I can get financing for this deal.

Thank you
Cindy :slight_smile:

2

Hello Cindy, What is your current financial status? Would you be able to put money down toward this loan?
Say 10%?

3

Depending on what state you are in there are 580 FICO 100% N/O/O programs, but the lender is going to require 6 months PITI in reserves.

4

Hi Chris-

I could try to come up with the 10% but what I wanted to do is to see if the owner will carry the difference (say the 10%)

Patrick-

Sorry but I do not understand the lingo. What is N/O/O? and I take it to be the PITI is at least 6 months of savings up front.

Thanks guys for your input.

5

N/O/O = Non-owner occupant. i.e., investment property

Yes. 6 months PITI reserves means the lenders wants to see that many months of payments in savings, checking, 401K, etc.

6

Hello Cindy, You could do that. What Iā€™m saying is that the private money investors will want you to bring something to the table. They ask for 10% and will do the entire loan from start to finish without you needing to carry from the owner.

7

Cindy,

A HML can give you up to 65% of the ARV to cover purchase + fix. Because of the location and credit score the lender will require a down payment. Most likely 10%.

AND YES, THE SELLER CAN HOLD A NOTE FOR THIS AMOUNT!!!

This is the perfect loan for you.

8

Cindy,
Do you already own a home? And if you do, do you have any equity there? There are programs out there that will allow pledged assets instead of money down. We have in the past put a 20 % collateral assignment against your primary and give you 100 % of the purchase price providing your debt to income allows it.