I am a newbie Real Estate investor. I bought my first rehab investment house three months ago, and now it’s been back on the market for about two weeks. I had no problem with getting the loan for this house considering that my credit is Bad. But, then again who would have a diffucult time getting a investment risk loan? My question is this… With my bad credit and i mean bad credit. Bankruptcy, and reposesion. Is there special programs that are out there to get me into my own home. I am aware of non qualify FHA loans but it seems to me that all of these assumable mortgages are not in the kind of neighborhood that I would like to live in. CAN ANYONE HELP PLEASE!!
Recently, I purchased the Carleton Sheets no money down course and I have run into a snag. I am a first time home buyer that is trying to purchase a home for 125,000. The problem: I have had credit problems in the past and although I am working on cleaning it up, the bank requires me to come up with a 10% down payment. Obviously, I cannot come up with 12,500 cash. Unfortunately, I have not got through all the material in the program and I could really use any “creative financing” techniques to come up with the money. It is possible that I can come up with 8,000, but I am looking for the worst case scenario. I appreciate any help or advice that anyone can give. Thanks so much.
Posted by Russ Sims on January 20, 2000 at 12:30:04:
Joe:
Do you have a specific home lined up, or are you just generally looking for a home in the 125k price range? If you have a specific home in mind, have you asked the owner if they will carry back a percentage, like 20%? You could even offer to pay a little more for the home for this concession. Owner carry backs can really help to reduce your down payment requirement, and if the carry back is 20% or better, you won’t have to pay mortage insurance.You might structure this so that the owner carries a $25,000 mortgage for 5 years. The amount is amortized over 30 years with a balloon payment at the end of 5.Interest only payments will be made for those 5 years. Lets say the interest is 9%.This should give the owner around $187 monthly.If you are afraid that the owner will have a problem with your credit history, write a letter explaining the circumstances and detail exactly what you are doing to clear things up. Then have some friends or employers write you letters of recommendation. When you approach a seller about an owner carry back, you’ll have this “portfolio” to give them if they ask about credit. This portfolio tells the owner that you’re serious about this, and it should be neat and in a nice presentation folder.Hope this gives you some ideas.
Russ
Go through the Sheets program from start to finish.
Right now it sounds like a snag is that you have only looked at the bank. Have you looked at any homes and talked with the sellers?
You’ve got to read that course and re-read it until it sinks in. After that occurs start your home buying process over again. Right now you are looking for answers that are contained in material that you have already.