The program is still being developed. Guidlines are not set yet. It is only for investors. Looking for feedback to see if this is something the market wants. Should be available by Jan. 01, 2007. The program is as follows.
Hard Money that is lent on appraised value for purchases up to 80% financing Non-owner. Can be singles, rows, duplexes, tri’s, or quad’s. Can be in LLC’s name. Be able to have unlimited sellers assist. Can get cash back at the table on HUD for purchase. A one time fee is included in the mortgage note and placed against the property. Mortgage comes with no payments, no up front costs, just one time pay off. The mortgage has to be refinanced within 30 to 60 days. Looking to allow credit scores down to 580 mid with stated programs. Costs per $75,000.00 is $5,000.00 per every 30 days.
For example: Investor buying property at $75,000.00. Property appraised at $125,000.00. Will lend $100,000.00. The loan can include all costs, and cash back difference from the $75,000.00 purchase price. The price for the funds is $6250 that has to be refinanced in 30 days. If the investor included the finance fee into their $100,000.00 loan would make the following happen. The cash back to them after standard closing costs, and the finance fee for 30 days and a refinance to a standard 30 yr term with cost of say max. $4,000.00. The investor can be into a property with $11,000.00 in their pocket, own it at 80% LTV, not of put a dime out of their pocket and the best part, it’s legal.
Is this something that investors would be interested in??
Also, another program availible soon. LLC financing 80% on payoption ARM. Start rate 1.75%. Need 640 mid and full doc, up to 24 properties.