Home › Forums › Closed Forums › Buying and Selling RE › CREATIVE FINANCING IDEAS
- This topic has 12 replies, 8 voices, and was last updated 9 years, 7 months ago by CA renter.
October 19, 2013 at 11:01 PM #20809October 19, 2013 at 11:06 PM #767087
If the properties produce income, you may be able to work with a local bank/credit union to tap them (up to 65% of equity or so). You won’t get a GSE loan, but portfolio lenders may work with you if the deal makes sense.October 20, 2013 at 12:57 PM #767096SD RealtorParticipant
You can easily get a hard money loan. PM me if you would like details.October 20, 2013 at 1:05 PM #767097
Sure he can, but if there are options at 5%, why would s/he want to pay 9% or more with points up front?October 20, 2013 at 5:07 PM #767099Nazzy_17Participant
Thank you for the information.October 20, 2013 at 5:54 PM #767102CDMA ENGParticipant
Now I am really going to show my ignorance of home lending but why wouldn’t a bank give a loan on this?
With 80 percent down it would be, at least in a traditonal lending enviroment, a sure bet.
Person defaults you get a whole chunk of change and the asset back.
I could see hesitentcy on the part of the bank if it was… say 20 percent… but 80?
CEOctober 20, 2013 at 6:04 PM #767103
The bank can’t sell the loan to a GSE without meeting certain specific guidelines. Less of an issue if the bank keeps some of all of the loan on its own books. So yes, banks can and will, but you have to work with a bank that can be flexible.
Also, keep in mind that the California Homerenters’ Bill of Wrongs hasn’t made it terribly easy for a bank to “just foreclose” and get their money back at the sheriff’s auction.October 20, 2013 at 6:15 PM #767104evolusdParticipant
I agree with spdrun – local bank or credit union that has portfolio options may work. You will still need sufficient income from the rentals to cover all existing and proposed debt service at a reasonable DTI. Regulators require that cash flow be sufficient regardless of collateral position.October 20, 2013 at 6:22 PM #767105SK in CVParticipant
Also, keep in mind that the California Homerenters’ Bill of Wrongs hasn’t made it terribly easy for a bank to “just foreclose” and get their money back at the sheriff’s auction.[/quote]
buncha whiney ass banks. It certainly hasn’t made it hard.October 21, 2013 at 11:59 AM #767121lookingtobuyParticipant
Banks typically use cash flow as a primary repayment source, in contrast to a pawn broker. As described prior, you may be able to use your rental income from you 1040 schedule e or your employement lender to satisfy your D/I requirements.October 21, 2013 at 12:01 PM #767122lookingtobuyParticipant
Banks typically use cash flow as a primary repayment source, in contrast to a pawn broker. As described prior, you may be able to use your rental income from you 1040 schedule e or your employment offer letter to satisfy your D/I requirements.October 21, 2013 at 12:13 PM #767124
.October 21, 2013 at 4:01 PM #767126CA renterParticipant
Or get a hard money loan from Piggs who’ll accept principal plus interest when you get the job and can refinance into a traditional loan.
- The forum ‘Buying and Selling RE’ is closed to new topics and replies.