95% financing - Posted by B. Wade

Posted by Ed Garcia on May 24, 2000 at 24:29:08:


The air is cleared. I understand completely.

I can’t deny that I got hot. I felt in your post, Beats me!. that you were
mocking me.

Drew I went back and looked at my original posts to you and Mark.
They were written with a matter of fact attitude, and not meant to be
offensive either.

There are curtain questions that require a more factual answers rather
than opinion, and Wades was one of them.

Drew, if you really want to know what I think about your honesty, here goes.

Drew, I don’t know you. It’s not fair for me to make judgment on you just
because of today’s incident. If I did, I’d have to take into consideration the OUT
COME, of how you showed CLASS not only to apologize to me, but to do it,
when you didn’t have to.

I’ve read your posts before and you’re a bright guy.
It’s hard for me to think a guy who’s as bright as you are, who says in his post,
(( Don’t worry though, I do plan on moving in…um…uhhh…umm… soon!))
that he didn’t know what he was doing.

I think you knew what was happening, and I think you knew what you were doing.
I don’t think you did it with the intention of being dishonest. I think the opportunity
was there and you took it.

Lets face it Drew, if you pay as agreed, there is no victim.
Your intention wasn’t to cheat Countrywide, your intention was just to get what you
felt was your best deal.

But what you were advocating, we can’t teach on the net.

Now if you tell me that I’m wrong, and that’s not what you were advocating.
Then you are telling me that you were just giving incorrect or bad information,
because Countrywide doesn’t do 95% LTV on NOO.

Drew, not only will I accept your apology, but I’d like to reciprocate it.

Now Drew, about my sense of humor; I want you to know that when I retaliated
with my post to you, THE DIVIL MADE ME DO IT.


Ed Garcia

95% financing - Posted by B. Wade

Posted by B. Wade on May 22, 2000 at 16:29:27:

I would like to find out if there is a nation wide financing company that will finance 95% on rental property. If you have any information, please contact me as soon as possible. Thank you.

YES!!! - Posted by Mark (SDCA)

Posted by Mark (SDCA) on May 23, 2000 at 11:31:13:

There absolutely ARE companies doing 95% NOO deals. I did one about 4 months ago. I do NOT know if they are nationwide. The company is LoanWorks. Their office is in Kalamazoo MI. I do know they also work AZ which is where my deal was. The are 2 caveatsL

  1. At the time I did my deal, they would only go 95% on SFR. I have since heard there ARE lenders who will go 95% on any residential property (1-4 units) but I have no specifics for you.
  2. The terms are somewhat onerous (as you would expect). I think I paid 9.75% PLUS pmi- and that was before rates went up.
    If you want LoanWorks info, email me and I will find it for you.


Re: 95% financing - Posted by Ed Garcia

Posted by Ed Garcia on May 23, 2000 at 10:26:51:


REAL WORLD is 90% LTV on NOO ( none owner occupied.)

You might find a portfolio lender that you’ve done business with from time
to time, who likes your deal and would make an exception because they
recognize that you’ve bought it below market. But don’t hold your breath.

I’ve done deals at 100% LTV on many of occasion, but it’s not a norm.

Wade, I’ve been doing financing for 30 years. I know when I can and when
I can’t. But for the benefit of this forum, the answer is 90% LTV on NOO.

Ed Garcia

Yes, in a round about way… - Posted by Drew

Posted by Drew on May 23, 2000 at 09:27:28:

I recently closed on a 2 family townhouse with a 95% loan from Countrywide. Although the promissory note says that I intend to occupy the property within 60 days of closing, the “Multifamily Addendum” has a paragraph which nullifies the paragraph in the note.

Kind of funny since just a week before closing we had to change the purchase agreement to reflect that we would lease back to the current owners for 60 days or less in order to comply with the note.

Something like this would work on a 2 to 4 unit, but bigger or smaller and the scenario changes. Good luck to you!


Re: 95% financing - Posted by Craig

Posted by Craig on May 23, 2000 at 01:27:40:

It’s highly doubtful you’ll find one. The best I’ve seen for NOO is 90% from Novastar and Countrywide and that was a while back, I’m not sure if they still go that high now. Even back then it was difficult to get people with outstanding credit approved for those, usually because of debt ratios, or showing little or no income on tax returns.

Re: 95% financing - Posted by ali

Posted by ali on May 23, 2000 at 24:11:44:

u mean non owner occupied , investment properties,
whts the credit grade of borrower

Re: YES!!! - Posted by JeneanNC

Posted by JeneanNC on May 24, 2000 at 08:04:06:

Please send me their info! Thanks.

Re: YES!!! - Posted by Ed Garcia

Posted by Ed Garcia on May 23, 2000 at 12:48:38:


I make it a practice to know what’s going on in the lending community.
Anytime I hear information that I think can be beneficial to myself or this
forum, I check it out.

Today I called information for the Loan works in Kalazamoo MI and there
is no listing. You will be hearing from me via e-mail for follow up.

Ed Garcia

Re: Yes, in a round about way… - Posted by Ed Garcia

Posted by Ed Garcia on May 23, 2000 at 12:33:43:


I’m sure you realized Countrywide screwed up. Or, maybe you and your
Broker, think you pulled one over on Countrywide.
By your own admission Countrywide is showing it as an Owner Occupied.

I assure you Countrywide does not go 95% LTV on NOO.

Ed Garcia

Re: YES!!! - Posted by Mark (SDCA)

Posted by Mark (SDCA) on May 23, 2000 at 20:21:19:

It was kind of strange in that my mortgage broker told me that the lender was in California but she was a ditz so I don’t rely on that. In any event, my statements have an 800# for customer service and a PO Box for correspondence in Kalamazoo MI. I emailed you the specifics.


Beats Me! - Posted by Drew

Posted by Drew on May 23, 2000 at 13:32:38:

Hi Ed,

I appreciate your comments on the board and keeping track of the ever changing loan programs for us neophytes. You sound kind of serious today so I hope this makes you smile. Here are my replies to your rather prosecutorial (e.g. Matlock) statements:

“I’m sure you realized Countrywide screwed up.”
-If you say so, but I don’t know, haven’t done more than 1 unit before. It seemed odd to me, but my attorney didn’t flinch when he handed me the rider for signature. I would have called to ask, but I was busy signing most of the paperwork for the second time…oops, they lost the first pile!

“Or, maybe you and your Broker, think you pulled one over on Countrywide.”
-I don’t have a Broker and a Broker has never had me (at least not to my knowledge)! C’mon Ed, you think it was my idea to attach a Multifamily rider? Just so you don’t feel too bad for Countrywide, my purchase price is about $50K under appraisal/comps, but I’m still paying PMI. Seems like they are making out pretty well on what is really a 80% LTV loan. AND, the rider also states that there are different (far worse!) rules on dropping PMI on a multi than on a SFH.

“By your own admission Countrywide is showing it as an Owner Occupied.”
-YES, YES, I admit it! There, you broke me down, I’m on my knees begging for forgiveness as I type above my head. Don’t worry though, I do plan on moving in…um…uhhh…umm… soon!

“I assure you Countrywide does not go 95% LTV on NOO.”
-If you say so, but please don’t tell them! Promise not to snitch on me? PROMISE!!!

Have a great day Ed!


Re: Beats Me! - Posted by Ed Garcia

Posted by Ed Garcia on May 23, 2000 at 14:33:01:

Hey Drew,

Were you always an Idiot, or is this just something you developed on your own.

If you want to get sarcastic, I’m your man.

Let’s play, and call upon your vast knowledge.

I do business with Countrywide. Now you tell me who to contact there, that can
VERIFY the program that you’re opening your big mouth about, and I’ll be glad to do it.

If you can verify that this program does exist,(which it don’t) then I’ll back off.
Other wise don’t talk about something you know nothing about.

I know about Countrywide, who they sell to, and how they do business.

If you want me to call the loan officer or WHO ever you worked with to verify this
Program, I assure you that they’ll fold like a cheap suit. Whoever was your accomplice
in doing this deal, I’m sure has enough sense to keep their mouth shut.

Here you are getting on this site telling everyone about a deal that you did dishonestly,
Yes DISHONESTLY, with a lender as though it’s a lending program.

Drew, there’s an old Chinese proverb that goes like this, and I think it applies to you.


I’ll say it nice and clear for you, Countrywide doesn’t make 95% LTV loans on NOO’s.

And yes, I say so.

Ed Garcia

Let’s clear the air… - Posted by Drew

Posted by Drew on May 23, 2000 at 19:33:44:

Dear Ed,

You have obviously inferred a disrespectful tone in my previous post that was not intended. I hope you will accept my sincere apology.

Your first response to me (and subsequent response to Mark) seemed to display a very serious tone and I tried to lighten-up the conversation a bit. The opening sentence in my previous post was honest and sincere, not sarcasm. I do appreciate your posts and the information you provide about various loan programs.

Perhaps, since you are not familiar with my sense of humor (e.g. the Matlock comment), I should have been more direct. My intent was not to inspire insults and defamatory remarks. That is not my nature and I didn’t expect that sort of response from you.

Ed, in numerous posts you have displayed a keen sense of humor. Your good natured bantering with others has amused me on many occasions. I assumed that same sense of humor would be in place when viewing my second post. My assumption was wrong and I hope this post clears the air.

Here are the facts:

  1. I applied for a 95% OO loan.

  2. I move in this summer depending on when the Seller’s custom cabinets for their new (historic renovation) house are finished and installed.

  3. The “1-4 Family Rider” was a suprise to me as I have not done anything more than 1 unit in the past, as I stated in my second post. As I mentioned, I am a neophyte (the absolute truth, not sarcasm).

  4. I don’t know anyone at Countrywide and did not, in any way, shape, or form, conspire to have a “1-4 Family Rider” secretly inserted into my closing documents. Signing this form, among the many others that come with a conventional loan, was a requirement of the lender.

My original post was based on my recent experience alone, not intended as a suggestion to try any dishonest tactic or a promotion of a 95% NOO program.

If you still think I’m an “IDIOT”, fine. I certainly disagree, but you have a right to your opinion.

However, I am deeply disturbed and offended that you called me “DISHONEST.” My honor and integrity is something I DO NOT take lightly!!! Applying for an OO loan without intending to occupy is absolutely dishonest and something I would NEVER do or advocate! Ed, please read my posts again, if you still think I have done something dishonest, please let me know.

In closing, I’ve certainly learned something about written communications from our exchange, so it is not a total loss. I do not intend to alienate you or anyone else on CREO and sincerely apologize if I have offended you.