Posted by Nate on February 16, 2001 at 23:55:57:
No, it’s not legal. It’s fraud. That’s why you would have to hide it from the lender. If discovered, you could face criminal penalties. Not recommended.
Financing Needed. - Posted by Emre (ID)
Posted by Emre (ID) on February 15, 2001 at 17:21:40:
Hi Everyone,
My offer has been accepted on a house in an extremely desirable area. Everything was going great until yesterday when we got denied for the loan because of our DTI.
We were going for a 103% loan, then use the money I have in my pocket right now to fix the place up and refinance it then sell it or just sell it without a refinance.
I can either use my money for closing costs, or fixup, but I don’t have enough for both. We would use the refi to pay everything off.
The house is a REO and we were supposed to close today, ugh! I’m very frustrated and am looking for ideas. Here’s the numbers.
Purchase price: 107,250
Current value: 121,000
Re: Financing Needed. - Posted by Terry (IN)
Posted by Terry (IN) on February 16, 2001 at 07:52:37:
Emre,
In what area of the Gem State are you located. What beacon score and DTI are you working with. Email me.
Terry(IN)
Re: Financing Needed. - Posted by tricia
Posted by tricia on February 15, 2001 at 19:07:46:
You can do one of two things, find a loan that you can do a second mortgage with like 80-10-10 or 90-10 or you can put the money down and take out a second mortgage after you close to recoupe your down payment.
I have not heard of a broker who couldn’t handle that and you have enough of a profit margin to pay the high rate on the second. If you have a friendly seller you can write the contract for a higher purchase amount and have an addendum that the seller would refund you the difference at closing but do not let the lender see the addendum. Have it notarized. One other thing you could ask the seller to hold the second.
Re: Financing Needed. - Posted by Emre (ID)
Posted by Emre (ID) on February 16, 2001 at 11:31:40:
I’m open to the idea because I know it’s pennies compared to the profit potential. However, my girlfriend is a mortgage broker, also coborrower, tried her company already, no breaks concerning fees and higher interest rate, and she is worried about that 2nd mortgage, as far as us not being able to do it. Then we’re stuck with no money for fixup. She’s stuck in the non creative side of things.
Thanks
Emre
Re: Financing Needed. - Posted by hollar
Posted by hollar on February 15, 2001 at 20:23:07:
Is the property in question to be occupied by the owner or rented out? Is it possible to get a second mortgage on a non-owner occupied bringing the total of the two mortgages to 100% LTV. Is it legal to write an addendum to the purchase agreement and not disclose it to the lender. If the lender finds out about the addendum, what could happen? What exactly is an 80-10-10 and 90-10 mortgage and is there a website that I might be able to find out more about them? Thanks for any response.