HEY CLUB! I AM A BEGINNING INVESTOR AND I HAVE ANOTHER QUESTION I HAVE JUST GOT TO ASK. I HAVE A FICO IN THE LOW 600s. I make a good amount of money to provide for my family. I see and hear alot about grants, and ways people acquire properties with no money down but it seems that I cant get any to work for me. Maybe i am doing something wrong. I dont have 15 or 10, let alone 5 thousand dollars sitting around to begin my career.
I am desiring my career as an investor so that I can give my nonprofit organization, Big Brothers, more time instead of working 50+ hours weekly as a chef and doing it part time. My question is “ARE THERE ANY REAL PROGRAMS OR STRATEGIES THAT ARE REALLY NO MONEY DOWN!?” HONESTLY I AM THINKING THAT I CAN PURCHASE THE FIRST PROPERTY AND USE THE EQUITY IN IT TO PURCHASE OTHERS USING THE HELOC METHOD BUT DANG- ARE THERE REALLY NO MONEY DOWN METHODS OR WHAT?
NO MONEY DOWN really does not exist… You still have to pay for an appraisal and insurance policy upfront…
But really, your FICO is to low to get 100% financing…work on getting it raised to 680 and you can buy a property with 100% financing using OO or NOO loans and still go stated or NO RATIO if you like. You will also probably need to use a stated asset loan since little in the bank it sounds…
DO not depend on pulling out the money on a HELOC to buy others, There are seasoning issues and LTV limits on HELOCs… Buy a property that will make money not lose money…
IN this business you need to think with the right head…
OK, finacial education needed here. What is OO and NOO? What is the difference between stated, no ratio and no doc?
OK, finacial education needed here. What is OO and NOO? What is the difference between stated, no ratio and no doc?
OO = Owner Occupied
NOO= Non Owner Occupied
Stated= Verifiable employment (taxes, business license, W2) State amount of income.
No Ratio= No income is represented. This is used when there is a high DTI (Debt to Income).
Credit standards are generally a little higher for Easy / No Doc loans. Borrowers must have maintained a good repayment history within the last two years. Additionally, some lenders will require borrowers to maintain higher bank balances than typical applicants usually must have.
Lenders will assess higher interest rates and fees on loans when little or no documentation is provided to substantiate the borrower’s income. Expect the interest rate to be about one-half to one percent more than the rates on a fully documented loan. Consequently, Easy and No Doc loans should only be used when necessary, not simply to avoid the paperwork requirements of a Full Documentation loan.
Easy and No Doc loans could be classified into “Stated Income”, “Stated Assets”, “No Income Verification (NIV)”, “No Income / No Asset (NINA)”, “No Ratio”, etc. With “Stated Income” loan, the borrower can simply state his income on the application, and do not have to provide any documentation to substantiate this stated income. Lenders usually verify that the borrower has assets that logically match the stated income. With “No Income / No Asset” loan no income and no assets are verified.
Thank! That clarifies things a lot.