Posted by Jerry on April 18, 2002 at 22:23:33:
Matthew, now I’m confused. I posted this on the main newsgroup, and had a fellow respond that he can broker a no-doc, no seasoning, at a 620+ FICO. Any ideas?
Do any Lenders do this? - Posted by Jerry
Posted by Jerry on April 18, 2002 at 17:49:24:
I have an opportunity to buy a house subject-to, but I’ve got to put a lot of cash into it. I need this cash back quickly because it’s a large part of my REI biz liquid assets for buying other properties. I don’t want to sink a big chunk of my operating funds into a house that will cripple my ability to do other deals.
House is worth $120,000 now. Little fix-up needed (under $3,000 for cosmetics).
Underlying loan bal: $69,000
Seller must have $19,000 cash to deed me the property, no ifs, ands or buts, and won’t carry paper.
So, for $19,000 cash and $3,000 fixup, I can buy about $29K in equity.
Will any lenders do an 80% no-doc refi this soon after I buy it? I would like to get about $91,000 to pay-off the first and get my cash back out, which works out to about a 76% LTV, but I don’t know if anyone will do this based on FMV instead of sales price, and when it’s only seasoned for a month or so.
Oh, I want to L/O the house, not sell it retail.
Any encouraging words (or otherwise)?
Thanks-
Re: Do any Lenders do this? - Posted by Rafiq
Posted by Rafiq on April 23, 2002 at 07:56:04:
Jerry,
There are many lenders that do these types of loans. If all you need is 80% and you have at least a 620 credit score, you can just about go to any lender and get this done.
Just to let you know, this is what I do on every deal. The only difference I see from your info is my spread is larger than yours. What I mean is I have more equity to play with and I max out the property to liquify the equity.
As for your deal, if you are not looking to get any cash out I guess this is an OK deal. However, if you want cash out you have a slight problem. From the way this is structured all you will get back is your initial investment.
What area are you in anyway?
Re: Do any Lenders do this? - Posted by matthew
Posted by matthew on April 18, 2002 at 19:52:37:
as my last words were that you need seasoningand yes there are no seasoning loans but not at that ltv- you can’t get both no-doc and no-seasoning loans- that doen’t make sense. if you find one please I would lioke to know
Re: Do any Lenders do this? - Posted by matthew
Posted by matthew on April 18, 2002 at 19:47:06:
the problem therein lies in we(lenders) go after purchase price in the first 6 mos, especially as an investor with less than 5 years experience and on a no-doc you better have 700+ ficos.I have been doing investors and self-employed for years. you might want top check into a local amsouth or first union or bank of america for an equity line and tell them its going to be your primary but I didn’t say that
Re: Do any Lenders do this? - Posted by Scot L
Posted by Scot L on April 18, 2002 at 19:07:35:
Yes there are lenders that have no seasoning for cash out refinances. If you cannot find one locally I would be glad to help you.
Scot L
empmon2@aol.com
Re: Do any Lenders do this? - Posted by sean
Posted by sean on April 23, 2002 at 10:16:59:
Hello. I was reading your message and wanted to inform you that with a 620+ credit score you could recieve 100% financing for a single family home, and unlike banks if you want to sell the house within the first year of ownership. Go right ahead. If you are interested email me back.
Sincereley,
~Sean