HML Question

ARyanHome4U · June 14, 2005, 2:05am

Hi Everyone…I am new and have a question. I currently have an “in” with my employer who is a builder and I buy our spec homes for a heck of a deal about 80%-90% of appraised value and t hen either rent them or sell them for the profit. They are higher end deals usually between 250k-400k. I am fearful that getting these mortgages and then paying them off so quickly and then getting another one will affect my credit…currently 743…is this a valid concern? And if so, would even looking into a HML make sense for me to pay those 5% upfront fees and PPP I have been seeing? I do not want to give up this money I have been making…I have done only 3 of these so far and all have sold within the first 30 days! Please help!!

tedjr · June 14, 2005, 4:29am

Howdy ARyanHome4U:

HML’s typically only lend 65 to 70% of the appraised value so that would not work in your case. I do not see any harm to your credit on borrowing and then paying off early. Sounds like you may want to get a revolving line of credit at a bank instead of the hassle of dealing with mortgage companies.

Another idea is to at lease use the same mortgage company each time. This may cut down on inquiries.

Sound like you have a super hookup.

LOL

richmortgagebroker · June 14, 2005, 9:57pm

ARyanHome4U:

Hi Everyone…I am new and have a question. I currently have an “in” with my employer who is a builder and I buy our spec homes for a heck of a deal about 80%-90% of appraised value and t hen either rent them or sell them for the profit. They are higher end deals usually between 250k-400k. I am fearful that getting these mortgages and then paying them off so quickly and then getting another one will affect my credit…currently 743…is this a valid concern?

It can be a consern just a little one though, just work with a lender that understand not to shop so much for you because many lenders pull there own credit and so you may get a lot of inquires on your report that would pull you fico down this not so much with buying and selling homes. Having mortgages on your report helps actually

And if so, would even looking into a HML make sense for me to pay those 5% upfront fees and PPP I have been seeing? I do not want to give up this money I have been making…I have done only 3 of these so far and all have sold within the first 30 days! Please help!!

Keep doing what you are doing if it is working keep it up, Having multiple properties on your report is not a problem I have not seen scores drop much until some of my clients have 20-30 loans on the report and I keep them going even after that.