Posted by Ed Garcia on December 31, 2000 at 11:54:25:
Kate,
You don’t tell us what his credit is like. If he has good credit in today’s market, he could get 100% financing. However if his credit is not that good, then your suggestion of finding a deal, doing it Hard Money and then converting it to conventional financing at a later date seems realistic. However if he has a credit problems, he won’t be able to refinance until he qualifies, so 6 months would be out of the question.
Kate, there are programs in between that we haven’t even discussed, because we don’t have enough information on your brother in-law. My suggestion is to introduce him to a mortgage broker and have them pre-qualify him for a loan. Then you can structure a deal around his circumstances.
Kate, I’d like to wish you and your family a Happy New Year,
Posted by Kate (VA) on December 31, 2000 at 01:09:52:
My brother-in-law has asked me to help him find a new home. He, his wife and two children live in an apartment right now and he wants to move into a townhouse or small single family in a better neighborhood. He is trying to pay down his debt though and he would like to pay less for the new house than he is currently renting for. He pays around $1000 per month for the apartment and he wants to pay $700-800 max so he wants to pay interest only for about 6 months. The only ways I could think of that this might be possible would be if he got a hard money loan with interest only payments and then refinanced in about 6 months (this would require finding a seriously discounted house since HM lenders only loan about 65%) or if he found a seller that would do owner financing that agreed to this arrangement (which seems very unlikely). Do these seems at all like viable options? He doesn’t have a lot of money to put down, either. I’d like to help him out, but I just don’t know if he is being realistic. Thanks for your help.