Posted by Winston, CT on July 11, 2002 at 15:13:10:
Lenders want to see that you have equity to lose if you don’t pay. Also, the 20% would get eaten up quickly in foreclosure. I am sure some else could give you more reasons.
Aproved for 80%, what now? - Posted by Indy
Posted by Indy on July 11, 2002 at 08:09:57:
Okay, here is the deal. I go approved for a mortgage from a private lender for 70% LTV, but I don’t have the other 30%. What can I do from here? How do I get the lender to agree to it? Please help. Thanks!
Re: Aproved for 80%, what now? - Posted by Ed Garcia
Posted by Ed Garcia on July 11, 2002 at 10:21:49:
Indy,
Based on what you have said, PRIVATE LENDER. Since they have agreed to lend at 70 LTV, and since you don’t have any money down. It’s obvious that you have to find a deal where the seller carries back the other 30%.
Now that was simple wasn’t it.
(Smile)
Ed Garcia
Re: Aproved for 80%, what now? - Posted by Shambhu Nath
Posted by Shambhu Nath on July 11, 2002 at 16:48:54:
Private lenders usually agree to 70% of the after repair maket price and hope you will buy the property for less than 70% of the market price and the full value will be realized after the repairs you will make. If the LTV 70% is of current price, the lender is not helping you as he has very little risk with deal and most mortgage lenders will give you up to 70% LTV even with bad credit.
The private lenders charge more as they can use after repaire appraise price whereas bank want to use lower of purchase price or appraised value.
Shambhu
Verify - Posted by garth
Posted by garth on July 11, 2002 at 10:54:55:
Verify that private lender will allow a 2nd mortgage
Re: Verify - Posted by Indy
Posted by Indy on July 11, 2002 at 12:37:12:
Why wouldn’t he allow a second? Wouldn’t he have the first position?