Posted by Ben Carmona on June 19, 2007 at 22:48:20:
Several questions are raised from the info you’ve given.
You note that the purchase is for cashflow, so this is an investment property he’s buying? If so, conventional loans dont offer 100% financing. There are only a couple lenders that allow for 100% financing and this must be done as full doc.
What type of documentation is being used to qualify?
In the even that this is an owner occupied property, they may have more options.
I’m trying to get a client a 100% LTV loan in Tennessee (Memphis specifically).
Here’s my problem, the purchase price is only $44,000.
My company owns the property and we have a buyer who wants to purchase it for cashflow with a conventional loan. For some reason, I can’t find a lender who can do it. I’m told the main problem is the low purchase price.
Re: Can’t get loan done!!! HELP! - Posted by John Corey
Posted by John Corey on June 20, 2007 at 04:19:07:
The problem is the loan amount (maybe other factors in addition).
Loans under $50K rarely happen. If the prices in the community are
low then a local bank will be helpful. They know their market and will
know what to do.
If the borrower credit worthy?
100% LTV for what sounds like a rental is almost a non-starter. All the
risk is with the lender. If the buyer will not put up some cash then
potentially it is time to find another buyer. Or consider some seller
financing if you understand the risks.