Posted by Tom on May 12, 1999 at 07:17:15:
Bruce, I’m just starting and I’m looking for a good broker. Let me know where you are located. Thanks.
Financing with seller 2nd - Posted by James
Posted by James on May 11, 1999 at 12:28:38:
I have a contract to purchase 2 properties from the same seller
Prop #1
FMV 66K
Purch. 63K
Seller 2nd 12.6K
Need 1st for 43.2K
Rents $1100/mo
Seller to pay closing costs up to $3200
63=12.6+43.2+3.2
(In reality im buying for $55K)
Prop #2
FMV 55K
Purch 48K
Seller 2nd 9K
Need 1st for 36.6K
Rents $750/mo
Seller to pay closing costs up to $2400
48=36.6+9+2.4
(Actually buying for 45.6K)
The purchase contract is structured as above because we thought we had a lender that could put something together 0 down with it written this way.
I am having a hard time getting anyone to carry a 1st mortgage on this deal without putting in 5%. Does this sound right? I have verifiable income, my credit score is 620. Any recommendation on how to proceed or who to talk to. Seller is quite flexible in how the deal is structured, but if he would need to carry more the price goes up quite a bit.
Re: Financing with seller 2nd - Posted by BABS
Posted by BABS on May 11, 1999 at 18:03:59:
James, you should be able to get a mortgage broker to do this deal. tell them you need 80% LTV, with 20% down no seasoning of funds. After close have the seller write a second for the 15%, issuing you a seller credit for repairs = to 15%. I am a broker but can do deals in PA only, otherwise I would put up the 20% to get your loan done. I do charge a loan fee, plus a little to put up 20%, which is paid back to me at closing.I can do four per buyer.Keep looking, or come up with 5% as in a previous message-you will have to season it for 60 days. I am experimenting with buying wholesale and writing a mortgage on myself, to resell at a disount, that may also work here, your seller would have to allow a larger first of course, but maybe you could take some cash out and still have cash flow. Bruce
Re: Financing with seller 2nd - Posted by David(TN)
Posted by David(TN) on May 11, 1999 at 14:43:11:
Put 5% down… but have an addendum to the contract that the seller will give you the 5% back after closing. You can get the 5% as a cash advance on a credit card or even once I had the seller give me 5% of their own money to put in my account and then I just turned around and gave it right back at closing (this made it look like I was putting my own money down).
There are alot of ways to be creative using techniques like this.
Re: Financing with seller 2nd - Posted by James
Posted by James on May 11, 1999 at 13:03:21:
Property 1, need 1st for 47200, not 43.
Basically, I have an accepted offer to purchase property worth $115-$120 and am looking for a 1st mortgage for about $84K. I wouldn’t think it would be hard to finance this! Please help