Are these good terms???? - Posted by WilliamGA

Posted by WilliamGA on June 16, 1999 at 24:37:43:

Thanks for the reply.
I failed to mention that the rated quoted ARE noo rates. So with what you are saying, it sounds like a good deal.
Only one problem. They have a five property limit. :frowning:


Are these good terms??? - Posted by WilliamGA

Posted by WilliamGA on June 15, 1999 at 18:12:14:

I am currently trying to find a lender to work with. I contacted one who is close by (Atlanta) and while he said their terms vary based on the amount of the loan, he gave me some general numbers. Do these sound right to you guys?

He said that they will go up to 90% LTV with 100% financing (NO MONEY DOWN!!) The rates are 11% for 360 months and 10.75% for 240 months. Lower for shorter periods of time.

Here is the part that I thought was rather high… He said that they charge from 3k to 5k for closing costs, based on the amount of the loan. When I commented that I thought that was a bit high, he said that it’s only 8 to 10 dollars a month added to the payment.

Do these figures sound right to you all? Any insight would be appriciated. Should I keep looking? I looked at about 10 houses today and will be making my first offers this week!!
While I am trying to do them “no money down with owner financing”, I want to have a lender lined up just in case.

Thanks in advance! You guys are great!!


Re: Are these good terms??? - Posted by Rob(Wi)

Posted by Rob(Wi) on June 16, 1999 at 15:07:48:

This does sound good, especially with n.o.o. Could you share who this lender is with the rest of us? I’m sure that it would be appreciated. Thanks.


Re: Are these good terms??? - Posted by Bill K. (AZ)

Posted by Bill K. (AZ) on June 15, 1999 at 23:49:14:


I have been reading that hard money lenders are usually only willing to go 65, maybe 70, percent loan-to-appraised value. So, if you purchase low enough, you might be able to get 100% financing since it would equate to 70% of appraised asset value or less. These lenders usually look to the value of the asset for their security, and they charge anywhere from 0 to 5 points of the loan amount. In addition, interest rates vary from 12-15%. Opting for a higher interest rate may reduce the number of points you have to pay.

I’ve also heard of 90% non-owner occupied (NOO) loan-to-value (LTV) loans. I am not aware of any 100% NOO LTV loans, but that doesn’t mean that they don’t exist. I’m just not aware of any. In either case, both of these types of loans usually require qualifying by the borrower since the asset might not provide enough collateral to satisfy the lender.

Based on your information, the rates you were quoted sound great! However, you don’t mention whether the terms you were quoted are “owner occupied” or “non-owner occupied”. My mortgage brokers have quoted me rates similiar to what you are referencing; however, it is for my buyers, i.e.: owner occupied.

No matter, you should always remember that it’s NOT the cost of money that’s important…it’s the availability. If these terms are truly available to you, make sure that you invite the lender to dinner ASAP. Remember, you aren’t going to be paying 12-15% for 30 years, just a few months. So, if you’ve calculated your holding costs properly, it really doesn’t make a big dent in your profit.

I hope this helps.

Bill K. (AZ)

Re: Are these good terms??? - Posted by WilliamGA

Posted by WilliamGA on June 16, 1999 at 17:41:14:


Be happy to share their name with ya’ll. I don’t know much about them yet, but so far they sound good.

Funding Center of Georgia
Tom Bishop or Ed Gordon

I do not remember if I mentioned it in my earlier post, but they do refi’s with no seasoning also.

Hope this helps!