My mortgage broker can’t be right… - Posted by Jamie
Posted by Jamie on February 15, 2000 at 22:00:39:
I hope someone out there can give me some info on this because my mortgage broker can’t be right.
According to her, there are loans out there where I can purchase a non-owner occupy property for 90% LTV. Great, all I need is 10% down.
So I ask her about refinancing a property and she tells me I can’t refinance for more than 75-80% LTV.??
Now I’m pretty new at this but is she right?
The reason I’m asking is because I want to buy a duplex. I could pay the 10% but of course I’d rather get it for nothing down. I believe I can buy this property with an 80% mortgage and a 20% seller carry but I would need to pay off the seller carry after 12 months. Fine, I refinance after 12 months and get the whole thing for nothing down. I believe the property will appraise for about 140-145k. I would be buying it for 130k. After 12 months I would need to refinance for about 129,000 (89% LTV) to cover both mortgages.
So, is my mortgage broker right? would I be unable to refinance this property for an 89% LTV.
By the way, the 80/20 purchase I mentioned above is based on a lender who would give a loan for 80% of the appraised value after a 30 day 100% seller carry. (basically a mini-refinance)I’m hoping it’s for a straight loan-to-value and not a combined loan-to-value, otherwise the 20% 12 month seller carry will come into play and all this mess won’t matter anyway.
I’m hoping someone out there may have a solution or some advise for me. Thanks for reading.