Financing/Lender Info And Advice Needed
We are new to investing and want to start asap.
We have FICO scores of 724 and 780.
Our home is worth 575,000 and we owe 400,000
We "loaned or invested" 58,000 to parents (who wrote a promissory note with interest) on their lake home.
Salary is 100,000/yr.
We have approx 300,000 in paper investments.
We want to know how much we can qualify to borrow based on these figures and we are also looking for private lenders and info on how using private lenders works.
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Thanks!
With scores like that and investments like yours. You should be giving us advise instead of asking for it.
I wanted to add to my post about hard money. Hard money is for certain situatiions where closing timeframe is short under a week, or the propery is uninhabitable and rehab loans wont work for you. There is nothing wrong with hard money given the buyer situation but if you can, I always recommend my clients look into other options if possible and try to negotiate with the seller as a private deal. And about private investor loans, just make sure you have an attorney guide you through the loan writing and documentation so you abide by all local and state laws in the loans you make take inthe private market to protect yourself against predatory lenders.
Banks & Financial institutions do not want to foreclose on property, in fact they hate it. Their primary goal is to lend money & collect payments.
Yes, even though there appears to be adequate equity even if they do so. They want the buyer to have some money in the deal because then they are less likely to walk away. If the buyer has 10%-30% of their own money in a property that can be lost, they would be more motivated to try to make the property work,
Just to agree with sanJose.
Banks hate to have a house as an asset becuase its not generating income they would rather have the bank loan as an asset since it they make money on the interest rate.
Agreed with the above. Banks are required to have so much in the bank to lend. If bad paper, then they can not get so much next time.100% is possible if you have a very strong assets to pledge or cross- collateralize. It is for high net worth clients. There are so many investors that want to put nothing down of their own money and use other people money. As a bank, what is the investor risk? Value was inflated. Look at it now. Bank looks at risk and wants to see if the investor can service the loan.
Hi, the reason you might be having trouble with this deal and your lenders if because this is a commercail property. The lendeing guideline are much stricter and different from residential loan programs. Picture this like you are not buying property but a business. Thats the way lenders see a commercial property. That is why you show cash flow statements, rental records etc.. Also if you tying to do the loan through your mortgage broker, make sure they have experience in commercial loans. I am a broekr and do investment loans all day long, but I dont touch commercial stuff. Its a totally different ball game and requires a commercial loan person who does that to make the best deals for you.
If this were residential, I would suggest you to get another mortgage broker. I am not soliciting, btu i can tell you if you shop around any good broker with a large lender network will get you 100% investor financing if you have the correct requirements in your FICo and certain aspects of your overall finacial picture. 100% is not a hard loan to do but the kicker is that typically you will not be even close to cash flowing at 100% LTV in most parts of the country. So actually if you run the numbers you are better off putting down some money, getting into better loan programs available because of the LTV and maybe if your good, getting the seller to add a concession and cash back at closing to you.
That my 2 cents.