Is This Financing Possible?
I'll bee purchasing a property in NY state, and I'm wondering if I'm going to find a mortgage for 90% LTV for a NOO 3-4 unit. Should I expect that I'm gong to have to put at least 20% down? (or find some other means of financing the 20%)
I have good credit (over 700), but I don't know how much of a role this plays here.
What are some suggestions for financing a NOO property with more then 3 units? 
the LTV of your loan will be determined by your income, your credit depth, your credit history, your income, the amount of reserves you have available.
All of this info is put in a computer by someone and out pops your risk grade. Someone will then analize it and give you a quote.
Lori
If you don't fit in the "norm" with that kind of credit your rate will be bumped and your LTV will be lowered.
[addsig]
Actually, the LTV will be determined by the lower of the purchase price or the appraised value of the property. You need to find out some different lenders loan programs, such as simultaneous seconds, owner carried seconds, etc.... I have done a few of these, but most of the time you need a flexible seller. I rarely ask a seller what the price is of a property. Instead, I ask them how much they want to net from the property, and what they plan to do with the proceeds, as well as the time frame they need the proceeds. Structure is what makes the deal work. Most Brokers only know the wrong way to structure a deal if it isn't a straight conventional or 20% cash out of investor pocket deal.
Good Luck,
Shawn(OH)
I would like to answer your question. However, I'm not sure what NOO means. Is it
Notice of Nonrepsonsibility? or Notice to Quit? Financing is not a problem in NYS.
Please clarify.
How many units is it???
1-4 is a residential loan (100%+ financing available)
5+ units is commercial (generally 70-80% LTV on most programs)
It is a 3 unit NOO property. (NOO = Non Owner Occupied).
I assume you're asking them about how much they want to net and what their time frame for the proceeds are to set up a better deal with them. Do you find that seller are often forthcoming with this information? How much of a relationship do you have to build before asking them about this?
In setting up a more favorable deal for both parties, do you often find that you're offering them more then their purchase price if you can pay them a portion of the proceeds over time with 0% interest?
Jason