103% LTV On Primary Residences
I have read a few books where authors mention that is very easy to obtain 103% LTV loans on primary residences.
I have called around and I have not been able to find anything higher than 97%LTV.
There are a few exceptions. For instance, a broker told me that I could obtain 100% financing as long as I could prove that I had enough funds in my bank account to pay for 6 months of mortgage payments.
Can I really find brokers providing 103% loans in Illinois? My fico score is 720.
I appreciate any help.
Andre[ Edited by andmorgado on Date 12/30/2003 ]
97% sounds pretty damn good. However, that was not your question. So, back to the matter at hand. What lenders have to offer is always changing. In my recent experience I have found that the person doing my loans pretty much has everything everone else has to offer. More often than not, when I tell him about some great flier I saw, he explains that he has that also, and then shows me why that offer actually sucks once you scratch the surface of the flier. My point is that you may want to try to develop a relationship with a few people (or 1) who you trust and who are more than competent in the loan world. Then explain what you are trying to do. He may even come up with something better. example:
opt1....80% first @7% 20%2nd @ 11%
100% financed
opt2...80% first @6% 25% 2nd @15%
but second is carried on another property/hard money loan. This allows for the lower 1st.
this allows you to walk down to washington mutual and put that 720 FICO to work. You can get 10% more money at prime(4.25%+-). HELOC
If you work all the numbers, you will get an extra 12%, and probably have about the same pmt.
Will this work for you? I don't know. But a good lender will profile your situation and come up with some "out of the box" alternatives. Be cautious these creative people usually charge a point for their expertise. Just remember, you usually have to invest a few bucks on the way to becoming a millionaire. Lenders don't like to work for free either. Imagine that!
Good Luck!
[addsig]
Try countrywide financed my house and more. Get somthing in the mail once a week for 125%.
103% dosnt sound like to big of a swing for a good broker to make for you.
ED
PNC or Security 1st I believe was the last 2 fliers I have gotten threw the mail both offering 125%. not sure of the qualifications though.
ED
Andre,
I spoke to loan officer today (in NJ) trying to get pre approvals for a 2 family I am looking at. He said I can get 100% financing for a single family but not a 2 family through him and on top of that get a 3% seller's concession (assuming the house appriased at the 3% higher) to include the closing costs. This would have essentially been the elusive 103% but I had trouble understanding why I couldn't do the same thing for a two family house since it would still be considered a residential property.
I know this doesn't help much but just wanted to show that in some rare instances and under certain conditions the 103% is available.
Thank you all, this is very helpful.
And by the way. I am indeed planning on investment my own money in real estate. But I have been in school for the past 3 1/2 years and don't have any to spare right now.
But I'm starting my full-time job on Monday. I just don't want to wait another six months to buy a place.
I know of a company that offers 107% on primary and second homes with a 680 fico. 103% with 620. The 3% goes towards closing costs.
At what interest rate? Are they licensed in Illinois? Could you send me a PM with their contact information?
The best deal I've found today was 5.375% interest plus PMI on a 30 year fixed and about 1700 in closing cost but the max was 97%LTV.
It sounds like you want to leverage your excellent credit score and decrease your cash requirement to closing costs. This can be achieved if you email or PM me I can give you more details. But, I will say this, high LTV's are common and much simpler to acheive if your debt ratio and income documentation levels are proportionate to your score.