Posted by Sally on April 09, 2000 at 17:38:53:
Try a 3+ year Lease/Option and use the time to pay down your debt. You could also look for properties with Seller financing.
mortgages - Posted by jennifer
Posted by jennifer on April 09, 2000 at 17:24:20:
Hello, I know I am out of my league here, but I have a simple question. I have a high debt ratio, but a great credit history, and good solid income. I am looking to purchase a home, possibly a two family, which i will occupy, i don;t seem to qualify for a conventional mortgage because of the debt ratio, any suggestions… thanks
Re: mortgages - Posted by mtgbrkfla
Posted by mtgbrkfla on April 10, 2000 at 13:21:45:
Jennifer,
With good credit you can qualify for a “Stated” income loan or a “No Ratio” loan.
These are readily available check with your local mortgage broker.
Re: mortgages - Posted by Ike
Posted by Ike on April 10, 2000 at 03:10:18:
Hello Jennifer, the ideas suggested by the people before me (Tobe ,Phil Fernandez , Sally and Ali ) are all fantastic ideas.I’ll like to add one more,and please feel free to ask around and find out if it makes sence and let me know what you find out.
With this strategy, you should be able to “knock off” all or at least part of your dept (depending on how big a dept you have ) with the purchase of your home.
Here is how it works,
- Look for a two family house in need of repair,
that you can get at a large discount. - Seek the services of a competent mortgage broker that can get you a loan based on the after repair value.Depending on the deal you might be able to use the proccedes to finance the purchase of the property and the rehab cost.
3)When the rehab is done, what you will have at this point is a beautiful home in your name that was purchased and renovated to “doll” house condition for less than the property is worth ,hence you will have some “built in” equity in your home. And since you have a good income and “stellar credit” (this will work for someone with bad credit also ) the so called conventional banks will be falling over them selves to get you to refinance your house and since you have equity, you can get all or part of your dept refinanced along with the property. If you were to rent out the other unit your tenant will not only pay down your mortgage but will also help you pay down your dept as well.
Lastly ,for this to work you may want to seek out the services of the following professionals —
1)The advice of a skilled a rehab investor ( this site is a great place to start ). - A competent mortgage broker, real estate broker, real estate inspector , an appraiser and the most important of them all, a dependable contractor.
I hope this suggestion helps.
To your continued success.
Ike.
Re: mortgages - Posted by Tobe
Posted by Tobe on April 09, 2000 at 17:54:15:
You could also go non-conforming. I am a mortgage broker and I know of several lenders who will let you get away with 40% debt ratio. The interest rates are much higher, but you could always refinance after paying down some debt. If your debt percentage is higher seller financing or lease options would be the way to go.
Tobe (ID)
Re: mortgages - Posted by phil fernandez
Posted by phil fernandez on April 09, 2000 at 17:47:17:
jennifer,
If you have good solid income and a great credit history I would do the following.
You find a house you like. Let the seller owner finance it to you and sell that newly created owner financed mortgage at the closing table for cash so your seller receives his cash.
The buyers of this created mortgage will look to your solid job and good credit and will be more flexible with your higher debt to income ratio than would a bank.
The big thing that you will have to do in the above mentioned scenario will be to convince the seller that he will receive his cash at the closing table as you will be selling this mortgage at that time to generate the cash for him.