Help On Financing...please
My friend, Kristi, and I are embarking on a long, prosperous (we believe) journey in RE. We are getting ready to put an offer in on our first house in Cincinnati, OH...but really would like to do it with no money down. It's a bank foreclosure listed for $46,900, but it needs between 10 and 20k to bring it back up to par. The broker told me if we fixed it up we could resell for $84,900, and there is a house on that same street @ $80,000 right now. It's a 2BR, 2.5BA, and the two of us just don't have much cash right now, but we are trying to think of every way possible to get started in the biz...any help is help, and we would greatly appreciate it! Thanks so much for your time, we look forward to learning and hearing from you!
get comps in the area ,first then proceed with the financing . how much ltv did you qualify for.
Thanks for your quick reply
Thus far Kristi and I have gotten preapproved for a 95%ltv, which would leave us to put 5% down cash...What else do we need to do?
The best way would be to use a credit card to cash advance yourself the 5%. Or you can always ream up with other investors (like myself) and share the profits until you build up enough capital to do the deals yourself
Most lenders do not allow the use of the proceeds of unsecured loans as down payment. In fact, you will be required to disclose in Section VIII of the 1003 whether DP funds are borrowed.
Now you can use a Non-conforming lender who doesn´t care about seasoning of funds. Just don't expect the best rate.
So now you have a high rate on your mortgage and a high rate on your credit card bill. But if the numbers work they work.