Who Can Help Me Get This Done??
On 2003-08-05 18:06, msfree wrote:
After speaking with Agents and Mortgage Brokers, I've been told that there has been some sort of mortgage fraud in the Chicagoland area. What I'm looking to do is NOT fraud but there seems to be some confusion. However, others out of state are saying what I would like to do (please see below) is OK AND legal.
*note* I'm aware of a few aspects of RE investing, financing, etc. But I still need some help!
Getting to the point... I'd like to know how I can go about acquiring a 1st time purchase (owner occupancy) and investment property (after 1st purchase) with a 100% ltv; no down payment; no closing cost; LEGITIMATE business as income but no supporting bank statements for now (last deal in late 90's -but now building credit on D & B); maybe C credit (still in process of getting things corrected-not sure of score); acquired property desired - foreclosed property or pre-foreclosure (as long as it has at least $25K equity) to cash-out equity at closing to facilitate/secure loan payments and further grow RE and other, again, LEGITIMATE, businesses.
Truly, Honestly, and Sincerely,
I just need a jump start to turn things around. I've been through a lot and this type of transaction would greatly help me as well as others.
P.S. For those who can assist me, I would be honored to see if there are any tools that I have in my arsenal that could help YOU. 
Buy your 1st one Owner Occupied w/ARM for lowest payments. Then find Seller who will carry 20% or more. Have him carry on your property, you use that $$ to put 20% down on his property and get an 80% loan for the rest. Now have 2 properties. Watch you don't get buried in neg cash flow.
I still need to be able to acquire the first property under the situation mentioned.
Can I not go stated with no bank statements and no seasoning to cash-out at closing?[ Edited by msfree on Date 08/05/2003 ]
I would like some clarity.
You want:
100LTV which is feasible with good / decent credit. An 80/20 program might work for you as well.
No Closing Costs which can be obtained through a higher interest rate, say a full point. Please note that if you go through an unconventional lender they might not provide you this option.
No stated income or supporting documents means that you would have to do a stated by signature loan or a W2 stated loan.
If your credit is C, then allot of lenders will not fund your application. The few that truly will will only let you have an LTV from 65-75% at best.
You might be able to qualify for an FHA owner occupied, if you have been good on making your monthly payments on time for all your bills
You might also be able to qualify for a more traditional lender program as an owner occupied, than an investment.
If you can get the owner of a property to provide you 3-5% down payment assistance, you would have a better chance of getting a deal done for real. You can either have an owner increase the property to support the 3-5% D.P. assistance, or you can find a property that is under market / appraised value and get your deal done.
I have known several, several real estate multi and deca millionaires. Even they can not walk into a bank and ask for free credit, unless they have great collateral or excellent credit.
I'm sure if you market yourself in this manner (the 35-% method), you "will" become an owner within the next few months. If you continually market what you are looking for then you will be truly looking for a lender in a haystack. There are about 3,000 lenders in the US. When you do find this creative lender, expect to be charged 5-10 points to orignate the loan, pay closings costs with cash and have high loan rates of 10-18%. At this point, it might cost you too much to do the deal.
Something to think about...
Remember that real estate is a gradual thing. If you can put yourself in the position to get just one piece of property and always be on time for your payments, then the world will open up to you. If anyone tells you anything differant, then they are lieing, they don't know what they are talking about, or they are trying to sell you something.
Respectfully,
Phil