loan situation

Financing, Hard Money Lenders, Private Money
1

I have the opportunity to join a local investment group (commercial and multi units). The initial investment per investor is in excess of 200k depending on project / ROI. The initial investment is 10% of the purchase price of the property.

My situation: I own a home valued at nearly 220k (paid off) in Ohio. I have an additional 30k in savings. I am currently not working due to a workmans comp accident where the company is fighting it (I have not receive pay since August). My wife is working part time making 28k annually. Our credit scores are both well over 700.

I do not want to use a HELOC from my home, but would like to borrow based on the project property. Would I be able to do conventional or would I need to go hard money? What kind of rate should I be looking at, and is there interest only options? How would this affect the other partners and myself in financing the balance of the property?

2

Hi mw.

With credit as high as you say, you should be able to sign a NO DOC loan, which will eliminate any need for work and income verification. Your property is owner occ and you should still obtain a decent rate. Interest only shouldn’t be a problem.

Don’t go hard money, you can get a much better program with conventional.

3

I agree. If you do not want a HELOC, you should do a conventional loan using the NO DOC option if you would like it in your name. You may even be able to use your wife and go stated. Your interest rate would be better that way.

4

The last option shown is good. However there are other sources of capital. Interest only options would be available. You could possibly qualify for an unsecured commercial line of credit. I would recommend secured financing as well. Great rates and options that way. emails welcome.