Hello again,
Some investors I know are anxious to offer a loan program to the REO end Buyer, or even the short sale buyer! This program would be tailored to the buyer and include a type of Escrow Hold Back that would allow the buyer to accomplish repairs and some rehab on the subject property.
I am interested to know what everyone’s opinion is. If this was your Dream Loan what would you like to see as benefits to the borrower on a loan like this.
my dream loan? ok!
Investors give me money and say go to town girl! just give us 10% return on our investment at closing and no payments until its sold and at closing. Then take the initial investment and do it again! and again! and again! (hey, if its 100k and you do 4 houses a year on it that is 40k in profit for the investor and this is my dream loan)
more realistically, I would like to be prequal’d and be able to get cash for auction purchases within an hour. (of course prelim title search has been done)
I would like to show the price comps at the low market value and get the loan based on purchase and rehab with NO payments OR interest only payments for up to one year.
Low/doc or no/doc (pref NO doc) with NO more than 10% interest and FEW or NO points added to the cost!
In a slow market would like the flexibility to offer owner financing with 20% down for up to 2 years to qualified buyers (as that is where the market is heading). Would like for the investors to be understanding about this and offer long term options (two year MAX and would pay inflated interest at that point such as a 2% added interest rate that accumulates but goes back to the investors at the end of the loan???) if that makes any sense.
Also, not to have my hands tied so that i have to pass up all the other deals in my area so that i can snag one. I would put my personal guaranty on the note and have a high credit score that i take great pride in and also have EXPERIENCE. Would rather have two ready to close while i fix 1 up (or more)…
you asked. :smile