Creative Finance Magicians, HELP!!! - Posted by Joe Bob

Posted by WilliamGA on December 04, 1999 at 22:44:42:

Joe Bob,

There are 2nd mortgages out there that will let you get up to 125% of your equity. Interest rates are high and costs are horrible but if you need it bad enough and your credit is good you might be able to get what you need.

Hope this helps,


Creative Finance Magicians, HELP!!! - Posted by Joe Bob

Posted by Joe Bob on December 04, 1999 at 22:27:50:

I am a homeowner in need of a home equity loan. Here is my situation.

  • Bought house new 1.2 years ago
  • Paid 129,900 for the house with only 1,000 down
  • Current mortgage balance is 126,256

As you can see there is little equity in the house, however I do not know what the appraisal value is after the past 1.2 years and a few home improvement projects.

I need a home equity loan for 10,000 - 25,000 dollars. Am I trying to get blood from a turnip or do any of you creative finance magicians know how to pull this loan out of your magic hat?

Pleas Help!


Joe Bob

How about a 125% 2nd Mortgage ? - Posted by BrokerFLA

Posted by BrokerFLA on December 06, 1999 at 17:20:26:

Yes, the 125’s are still available. If you have been in your home over 12 months the 125% would be computed using your current appraised value. You need a credit score of 640+. With the number you mentioned above you could get $36,500. The interest rate would range from 12.35% to 16.50% based on your credit score. These type of loans are almost always “Full Doc”.

Re: Creative Finance Magicians, HELP!!! - Posted by Jim IL

Posted by Jim IL on December 06, 1999 at 14:25:20:

Joe bob,
My question would be, "what do you need the cash for?"
Once we know that, then perhaps we can come up with an accurate answer.
The key to solving a problem is knowing whatthe problem is.

Ignore the obvious solution, and work backwards.

good luck,
Jim IL

Re: Blood from a Turnip? - Posted by Domineaux_Tx

Posted by Domineaux_Tx on December 06, 1999 at 07:49:00:

Yes, Blood from a Turnip is closer to it. I have been amazed at the things a bunch of the Creative Real estate folks do on a daily basis. Creative financing has taken on a whole new meaning. Maybe you could borrow the money from your best friend, whose wife is going to have your grandchild. I mean go for it, who knows. The only danger is a few fees and nos. Afterall you only need one YES!

Re: Creative Finance Magicians, HELP!!! - Posted by steph in tex

Posted by steph in tex on December 05, 1999 at 11:17:42:

depends where you are. if you’re in Texas–you’re out o’ luck…here in texas we can only pull cash out up to 80% of our Appraised value…:^(
if you’re in CA for example-- you can probably make it happen with decent credit. check with a good broker, and see what they can do for you.
steph in tex

Where is Paul Simon? - Posted by Bud Branstetter

Posted by Bud Branstetter on December 05, 1999 at 10:46:25:

Back in the early 80’s there was this red headed guru that used a concept called equity sharing. You could sell you part of your house’s future appreciation for cash. Come to think of it isn’t that in the PACtrust