Posted by Ed Garcia on April 24, 2007 at 11:25:41:
Bill,
I?ve kind of taken a few days away from the board and in coming back you?re question is the one at the top so I thought I give you some insight.
First of all there is no capping the fees law of 5% on none owner occupied. What you?re in reference to is owner occupied due to predatory lending. You don?t mention if you?re buying to hold or to flip. Since you mention cash-flow, we?ll have to assume you?re buying to hold. A small local bank is your best bet. Their there to service the community and a small deal would be right up their alley.
Being a portfolio lender, they can be flexible in their terms and conditions. They may not express this at first, due to they do have preferable terms and conditions that they will try to charge but everything is negotiable.
non-owner loans less then $50k - Posted by Bill Foust
Posted by Bill Foust on April 23, 2007 at 23:41:03:
I’ve got a couple properties that I would like to purchase, but I’m having a lot of difficulty because they are less then $50k. They are both doubles that need cashed out of a short-sale situation and will cash-flow well. The $50k mark seems to be a barrier for most banks because apparently they cannoy charge enough fees to cover their costs because of some law capping fees at 5% of the loan value - or something like that.
If anyone can reccommend a lender that can do small loans like this I would appreciate it. I have a 650 credit score and am 1 yr out of a chapt 13 BK. My strategy is to buy and hold and there are plenty of good deals out there, just no financing.
Thanks
Bill