Posted by William Buzzell on March 13, 2002 at 15:00:16:
The lender may assume that you are going to live in the property, or they may have a loan program that will have a hard money second for twenty percent of the purchase price in back of a first deed of trust for eighty percent of the purchase price.
How are the interest rates compared to the rest of the market. Does the property cash flow or do you have a big negative? Answer these questions before you take the next step. Also, if the lender assumes that you are going to live in the property, or if the lender is encouraging you to say that you are going to live in the property, and you do not intend to do so, walk away from the deal. It is not worth the trouble.