Posted by bob on October 17, 2003 at 06:46:22:
It sounds like what you’re proposing is a $50,000 unsecured loan. And no matter how high your score is (720 is pretty good, by the way) you are going to be hard pressed to get that much of a line of credit without some investment history, solid verifiable income (which being in school you proably don’t have) and a sound business plan.
The only way I could think of to make this work is finding a lender that will lend on the appraisal amount rather than the sales price. Even this will be a stretch. Say this condo will appraise at $50k and the seller will accept $35k. You then get a %80 investment loan in the amount of $40k. You know have $5k left to pay closing costs, attorney fees, etc. Paying off your car and credit cards is now not a reality. You may as well take what ever remaining money you have after costs are paid, if any, and go to Spring Break next year! All joking aside, I’m only 22 myself, this still sound like a good deal. Buying is property at 70 cents on the dollar can usually be a great investment!