Posted by Wayne-NC on March 05, 2001 at 21:31:06:
You said it. With 100% equity just about anything is possible. Without that and assumable loans to work with in buying investor properties, 100% financing is hard using conventional methods. Given the market that I am in, that is all that is available. The original question is dealing with mortgage companies so I assumed it is all conventional.
100% Loans - Posted by Jeff
Posted by Jeff on March 05, 2001 at 04:34:23:
I anserwed an ad in the newspaper for 100% loan programs. The woman told me a private mort co. they hooked up with will give a 1st mortg @ 80% then a 2nd mort @ 20%. Thus 100% financing. A cap of $320,000 is allowed depending on your credit.This by the way is a real estate firm.I have a appt. on Fri. Anybody familiar with this type of program? Can you arm me with any questions I need to ask.
Thanks Jeff
Re: 100% Loans - Posted by Barbi Christy
Posted by Barbi Christy on March 07, 2001 at 01:53:49:
If they’ll do Investment property 80/20 please tell me “What’s the name of the Lender”? They are offered here in Oklahoma advertised as 100% financing, but I believe they are only for owner occupied. I’ll find out and let you know. The only problem is that you are heavily leveraged and have TWO payments instead of one–that can really cut in to cash flow if a long term vacancy occurs in a rental. Or you end up with a dead-beat on a lease option, hopefully you got enough lease option consideration up front to stay you through.
Re: 100% Loans - Posted by Wayne-NC
Posted by Wayne-NC on March 05, 2001 at 06:06:54:
I have heard of that as well. It’s called “piggy backing.” If I remember correctly it is only for owner occupied homes. I have been trying to find a company that will do a 2nd on an investment property. So far, no luck.
Re: 100% Loans - Posted by Irene Szabo
Posted by Irene Szabo on March 05, 2001 at 10:22:18:
What about a Vendor Take back for the second?
Re: 100% Loans - Posted by Wayne-NC
Posted by Wayne-NC on March 05, 2001 at 12:06:19:
The way I see it the first mortgage holder plays the cards. I don’t agree with it but I have been running into “Combined LTV” on any investor loans not to exceed 95%. They want some of your own cash or value into the deal. After closing it is a different story. I tried that too right after closing but the realtor said something about mortgage fraud. I’m not sure what a “vendor take back is.” Please enlighten me with a new idea.
Re: 100% Loans - Posted by jackson ordean
Posted by jackson ordean on March 05, 2001 at 20:40:20:
Am I being naive? If owner has 100% equity, you can easily finance anything 100%: 1) Owner gets lo-no doc loan for 50% of maximum income stream valued property, you buy at say 82%, assume sellers loan “on contract”, seller takes back rest. or 2) you give seller quit claim deed, he gives you warranty deed to take to the bank - you are now the 100% equity holder; get the 1st, owner carries 2d. , do new deeds at closing - close maybe, but technically not fraud, or are my morals shot? Also you end up with equity with either the above. I actually made this offer, but seller turned down after deliberation, not trusting my cash flow analysis and ability to maintain debt service.