First Time Buyer - Posted by Darren

Real Estate Investing Real Estate Financing
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Posted by Chris on June 01, 2005 at 21:37:36:

oh and credit…if you dont have good-very good credit…then you dont have a chance of gettin 2nd mortgage without payin a heaps in fees if you can even get it at all.

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First Time Buyer - Posted by Darren

Posted by Darren on June 01, 2005 at 09:32:58:

Hello,

This is my first time to the financial board. I hope the experts here can give me some advice.

I am buying a nice sized SFH (3/2) for $55K. My partner and I can get a 90% loan on it for 7.5% fixed We will need to come up with 10% of purchase price ($5500) , closing costs and insurance ($1500) and repair money to spruce it up($2500) or approximately $4,750 each. After doing the repairs, we could like to reappraise it. It should come in at $85,000 easily based on my comps. We would like to recoup the $4750 we’ll each pony up. Is it feasible to get a second on it for $10,000 after the appraisal? We’ll still have a good chunk of equity in it ($85,000 - $55,000 1st - $10,000 2nd = $20,000 equity) Rent will be $850 to $900 with positive cash flow of $250 per month by my estimate.

Thanks!

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Re: First Time Buyer - Posted by Robert

Posted by Robert on June 01, 2005 at 17:39:17:

You could always get an FHA 203k loan, for the purchase and repairs

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Re: First Time Buyer - Posted by Michael Steele

Posted by Michael Steele on June 01, 2005 at 13:30:13:

The answer to that question depends on credit and how the deal is structured. Will your credit hold an unseasoned second line of credit shortly after closing? Please contact for more details

Michael Steele

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Re: First Time Buyer - Posted by Harold

Posted by Harold on June 09, 2005 at 10:59:15:

How does that work? Say I find something that has potential and is in dying need of repairs. Where and when in the process does adding repair cost to the loan come in?

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Re: First Time Buyer - Posted by Darren

Posted by Darren on June 01, 2005 at 13:49:58:

I’m not sure I understand the question. Wouldn’t the equity in the house secure the loan?

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Re: First Time Buyer - Posted by chris

Posted by chris on June 01, 2005 at 21:35:55:

not neccessary. You would have to show how you would pay the loan back. On top of that, seasoned means amount of time you have property, so if you havent had it but few months, some lenders wont loan you money cause they have seasoning issues.some require 6 months while others require year or maybe more.