Need a loan

Financing, Hard Money Lenders, Private Money
1

Hey y’all.

Here’s my situation: I’ve owned an internet business for the last 7 years. Steadily, its declined in revenues, until recently, my supplier refused to sell me any more product because my volume is too low. This has caused me to transfer the assets of my business to another owner, who is managing them with no guaranteed results.

For the past couple of years, I’ve driven a cab on the side, which has helped our cash flow tremendously. Unfortunately, it is almost impossible to document the income.

We’re wanting to move into a manufactured house on a new lot, for a total cost of about $90k. Because of my loss of revenue with the business, and lack of verified income with the cab driving, (which I am going to do more of to support my family,) its really hard to convince a lender to give me a loan.

We’re currently selling our house in another area, but the neighborhood is in a down-swing. (Nothing wrong with it physically, [40 years old,] but houses are not moving fast here.) We have it on the market for $129k, with comps around the same price.

We need to get a new loan to buy the manufactured house. Traditional lenders will prove difficult. I’m putting this question to creative investors because you may know some strategies I could put to use.

I’m open to any ideas.

2

With solid credit you can go “no doc”.

3

Is the home manufactured or modular?

4

Since you have been self employed for seven years as long as you have decent credit there hsoud be no problem going stated. You will most likely need some money down though. but the down payment shouldn’t be hard to raise with a seven year old business.

5

:cool HEY HEY look at this idea why not offer owner financing on the place you are selling with a simultaneous closing ///// you would get up to 90 % of the apprasial and can all be done and over with in 30 days about from sell to close

AND you could make the same thought to the person you want to buy from ??? AND every one would have there money and be happy :beer

6

Wouldn’t you need to know whether there is existing lien on the property he is trying to sell before suggesting such a measure?

Regards,

Scott Miller

7

There are no banks that lend on manufactured home based upon a NINA submission—hard money loans are available for these properties using a NIVA approach (offering between 70-80 LTV).

Regards,

Scott Miller

8

:cool if it is his property he would know if it has any outstanding loans or leins and would price in line for pay off funds from the sale :banghead

9

lol

10

You are missing the point—you are suggesting a course of action without knowing enough about the scenario…

I understand the OP knows whether or not he/she has an existing mortgage—that is rather moronic in its obviousness…You don’t, and that is what I’m taking issue to.

If I gave advice with no caution to detail, I’d cost alot of people alot of time & money.

Regards,

Scott Miller

11

:cool OKAY ez iam giving the poster a option based on what he has posted ! NOTHING more as he has given nothing more to work with correct . HE was looking for some idea and thoughts on his deal and he has recived mine /// and yours and whom ever wants to put his or her @ cents in

NOW if he want ed to talk futer he could contact any one off the site to help with futher information on his deal //// if he liked one idea over another correct

so there is no reason for any one here to pass a call of right or wrong on the thoughts or ideas ?? AS this is the good old usa where we can all say what we think and know we will not be put down for it :bobble

12

Thanks for the input, folks. I do appreciate it.

I’ve heard of a no-doc loan, but I still thought you needed to verify income. Are the interest rates higher? (Anybody do these in NC?)

Regarding the seller-finance options: its a very interesting idea, but unfortunately, I need to get some money out of the house to pay back some loans. (I do have a second on the home, with about 35k total needed to pay it out.) How can I get this money out at closing if I seller-finance?

Speaking of which, does this option help sell a house quicker? I’ve got a nice 1500sqft ranch in a somewhat declining neighborhood. I want $130k for it, and am offering about $5k in incentives. It would be hard to carry two mortgages at once if I moved before I sold it.

Also, I’m still carrying about $60k on my first, with my original financing of 8.375%. (I know, I know, I should’ve refied it awhile ago, but I kept saying, “I’m going to be moving soon.”) I suppose I should get that refied if I do the seller finance thingy.

Thanks again for your input. I do like these boards.

13

I should also mention we’re not going for the manufactured home anymore, but are angling for a traditional, older stick-built in an up and coming neighborhood. That may make things easier.

14

This does open doors for you (as mentioned before, manufactured homes are limited in the way of financing options)—there are number of low doc/no doc alternatives that would allow you to get to 85-95% of purchase price depending on several factors unknown at this point.

Regards,

Scott Miller

15

:cool yes owner finance is a big help in selling as you open the door to a whole lot more buyers !!! AS they do not have to go through the bank stuff that is getting more har to get by as the days go by

YOU can do something called simultaneous closing as well as part of your owner finance and you will have your cash out of the sale //// short of closing costs and a few other small fees //// nothing like a realtor of 6 % or more and then closing cost

16

[quote author=HooBoy link=topic=29870.msg140137#msg140137 date=1185493529]
Thanks for the input, folks. I do appreciate it.

I’ve heard of a no-doc loan, but I still thought you needed to verify income. Are the interest rates higher? (Anybody do these in NC?)

RESPONSE: No doc loans don’t require the disclosure or verification of income or assets—the tradeoff for this financial privacy is a lower LTV (loan to value) allowance and higher interest rates when compared “full disclosure” loans (called FIFA, FIVA or FULL DOC).

Regarding the seller-finance options: its a very interesting idea, but unfortunately, I need to get some money out of the house to pay back some loans. (I do have a second on the home, with about 35k total needed to pay it out.) How can I get this money out at closing if I seller-finance?

[b]RESPONSE: What is the total amount of all the loans you wish to pay off? Do you intend to use the proceeds of the sale towards the purchase of your new home (you will need to if you intend to go low doc/no doc)?

My gut feeling is that offering seller financing isn’t going to work for you (particularly if you intend to use some of your windfall towards the payment of other loans)…If you didn’t need the proceeds, you could consider offering the equivalent of the leftover equity (Sales Price - Outstanding Mortgage(s) = Left Over Equity) as the basis of your seller financing. [/b]

Speaking of which, does this option help sell a house quicker? I’ve got a nice 1500sqft ranch in a somewhat declining neighborhood. I want $130k for it, and am offering about $5k in incentives. It would be hard to carry two mortgages at once if I moved before I sold it.

[b]RESPONSE: Selling your house quicker depends on a number of things that are both within and outside of your control…Example of what isn’t within your control—demand…

Example of what is—pricing your property correctly…

Ironically, seller financing is the most compelling marketing tool in the homeseller’s arsenal, but there are other “lender-like” incentives you can use to increase the appeal, allow more people to qualify, etc.—consider these ideas:

  • Offer the buyer a no-cost loan (offer to pay closing costs)
  • Offer the buyer a mortgage with a below market interest rate (offer to fund a temporary or permanent interest rate buy down).[/b]

Regards,

Scott Miller

17

If I’m refinancing my house to attract a lease-option buyer, what needs to be closed aside from the refi? I’m not understanding the process.

18

:cool IF you are doing a refi on your home the owner finance has nothing to do with it in any way JUST do your refi and sell it as you were planning to as a lease option

19

Okay, very good. I was confused about that.

Okay, well, it appears I’m going to have a new job, starting next week, in a different part of the state. I’ll need to start working there before I’ll be able to find something to rent/buy down there.

I had an internet based business for the last 7 years. For the last 2, stated profits were very low - so low I couldn’t get a regular mortgage for a new house last year.

I have good credit, 660 or so, and have not missed any payments on my current house. I want to refi to get a good monthly payment, as well as get some money out to pay down my debts.

My house is in a declining neighborhood, (or perhaps its slow because of new home construction. I don’t know, but houses are just sitting in this neighborhood now.)

The house is sitting on $129k, with about $4500 in concessions. We’ll drop it $10k if it doesn’t get any interest in the next couple of weeks. Or, if the refi works out, we could hold onto it longer and get our price.

And… if we can lease-option it, we’ll likely get our price as well, (but the refi becomes vital at that point.)

So, refi the existing house is one thing, and looking for a new mortgage on a place in the new work area is another.

Does anyone have a favorite broker/bank they could recommend? I’m not so good with all the details of REI, so overly fancy solutions would not be an option for me at this point. I’ve got a lot on my mind now, and am looking for the best way to do this.

(Just previewed this post - if it looks scattered, its because that’s where I’m at right now! Some clarity would go a long way right now.)