Best Mortgage Option?
If I am looking for a mortgage around 800,000 for an investment property (about 20 miles from current residence) what would my best options be? I am planning on selling the property within 2 months to 12 months maximum. I am thinking interest only loan and possibily 80% 1st mortgage, 15% 2nd mortgage, and 5% down payment (but not sure if that will be possible).
I will be paying the mortgage and down payments from my line of equity so I want the lowest down payment and preferrably no points.
What would my best options be? Most banks are trying to charge around $4800 or so for interest only, 10% down, no points. Does this sound high or normal?
Lenders and Mortgage brokers are in survive mode. Their pipelines have dried up and they are scrambling to survive and pay their bills.
So if you are asking if $4,800 (less than 1% of your purchase price), plus 10% down (given the current state of defaults, and no points is high or normal. I would vote normal. I would just make sure you are talking to a mortgage broker that specializes in investment properties and they will get you several options.
What is your plan if you have to hold the property longer than a year?
When did you last refinance or buy the house and what was the appraisal amount?
Will she take a note for the 15K for a limited period of time?
I have seen I/O loans advertised above 80% LTV.
One solution (if there is equity) is a HELOC which is interest only but a little pricey. Check out any credit union you might belong to. They typically have good terms. I have used www.penfed.org and liked them.
w/ yous numbers that would put you a hair over 90% taking out the 45.
penfed will let you go 90% on your primary residence.
Good luck.
go to a hard money lender or equity lender , if this is deal they will give you that letter then do a double closing make sure the tittle company discloses this to the lender , keep in mind you will have to pay closing cost , but thats ok you still make money!!!
Ace Funding
123 Main Street
Orlando, FL 32819
407.902.7826 Voice
407.423.2054 Fax
September 29, 2007
This letter qualifies that Beiser Land Trust is pre-approved for a new home loan in the amount of $435,000.
Thank You
Henry Thornton
Managing Member, Ace Funding LLC
thanks for the posts. bgross what do you mean by that post?
Type of a letter and list the phone number of your friend (in this case Henry Thornton) and tell him that if someone calls that he is HB Funding and that you are preapproved.
What about if the proof of funds letter needs to be for cash? Will they actually call the number and verify it more?
Can you edit a pdf, do you know Photoshop, can you save a web page, etc? Get creative. You should also change your proof of funds letter to state that there are no conditions on the approval - which is as good as cash.
You are editing a personal bank statement. How can the realtor verify this? The bank would tell them nothing. When getting a loan all the lender wants is a bank statement or even a screen print from the web site so how could the realtor want more than that?
Brenda,
Are you suggesting that ejosh87 create his own pre-qual letter? Sounds like something those mortgage fraud scammers did, and they went to jail.
I thought he was flipping the property so he loan is really a non-issue.
Also, the prequal letter is only to get the Purchase and Sale signed. It is not part of a loan package so I do not see how it could be loan fraud. Seems to me there has to be a loan to be considered loan fraud.
I did not realize that he would have to get a loan. But he says that he wants to assign this deal to an investor.