Posted by Mike G on February 17, 2002 at 10:40:46:
Couple of comments about the credit report thing.
I, as a broker would welcome a fax report as it saves me initial money and time. But, through my experience here are some things to know about…
A broker will want to see your credit score from at least 2 of the 3 major agencies. Many credit items are not reported on all 3 so just getting a report from 1 agency doesn’t show the “total” picture.
Many consumer credit reports a borrower may get do not have a FICO, Beacon, etc score. Make sure the report you get has it.
The report must be current - shouldn’t be older than 2-3 months.
Make sure you fax ALL the pages of the report, even ones that seem meaningless. If it says 1/9 pages at the top - make sure you fax all 9 pages.
Don’t have any writing on the report.
Must be a clean fax…
Most of these things are common sense, but you would be amazed the stuff we get. Your credit score is probably the biggest factor in terms of what direction the loan takes. This is one area a broker/lender will not be lazy about. Good brokers can “get over” most credit report and score issues and get you a good loan - but the report will determine which route they take.
poss 90% LTV on rental prop. w score 690? - Posted by mnelson
Posted by mnelson on February 11, 2002 at 21:18:59:
My husband and I would like to buy two properties they are both duplexes next door to each other. One property is 87,000 and needs work the other is 149,900. Both are fully rented the 87,000. rents for 1400.00 month, Taxes 80.00 mo, Figure in Vacancy etc it’s profitable. It has an upstairs that can be completed to add 2 additional bedrooms ( and increase the rent) The other one takes in 1985.00 month, with taxes 100.00,vacancy etc. It makes about 700.00 a month positive cash flow. We have been approved to buy both properties by a mortgage broker in the area. But the deal is they want 20% down on each property. We would like to buy them for 10% down. We had a Chapter 13, we filed 10 years ago. Our son was very sick-huge medical bills. We paid it off early 100%. But because there are still a couple of things we haven’t gotten off my husbands scores are in the 660-690 range for the 3 credit bureas. My scores are all in the 680-690 range. My question is- are there any loans out there available at 10% down instead of 20% down ( or even 95%LTV would be great!). We earn a six figure income and our debt to income ratio is fine. We live in Minnesota. Any help would be appreciated! We made offers on both properties and 1 has already been accepted, so we don’t have a lot of time. Hoping for a March 4th Closing. Looking forward to answers from everyone out there! Thanks.
If you are still in need, with your credit score I can get you 95% financing with the company I work for. Email me if you are interested. Oh ya, it can also be a stated loan too. Its a great program!!!
90% on a duplex; lender paid PMI - Posted by youngsterz
Posted by youngsterz on February 18, 2002 at 01:54:22:
Sweet deals! You definitely want to find a loan for those.
A 90% LTV on a duplex should be easy. Shop around, as mentioned in the related posts. 3-4 units is tougher to get a 90%, but duplexes are easier. I just closed one two weeks ago, through Wells Fargo.
One other thing to look into is the notion of Lender Paid PMI. With the 90% LTV, you are into PMI, and instead of paying the monthly premium, the lender may up the rate and cover it for you. The trade-off is that if you keep the loan for a long time, the lender keeps receiving a better loan yield, even after your LTV goes below 80%. But if you plan to be out of the property or refinance within a few years, the Lender Paid PMI can be a better deal. You just have to run the numbers. I have the property with a tenant purchase option, and I hope to be out of it within 6 months, so the lender paid PMI will save me about $40 per month, as opposed to the normal PMI premium.
Re: poss 90% LTV on rental prop. w score 690? - Posted by Marcos
Posted by Marcos on February 12, 2002 at 08:41:20:
Shop for a mortgage broker. Like Graywolf says. 10% down is very possible. And when you get close to 700 or so, it’s even possible to do a 95%. But, I wouldn’t count on it. I have a friend who just got a 10% investor loan on a property and his score was around 610-620. So, you should have no problem.
Shop around mortgage brokers. Don’t let any of them pull your credit, get a copy of your current reports, and fax them to any mortgage brokers that ask about your credit.
If that mortgage broker can only do 80%, I can’t think she’s a very good broker.
Good idea about faxing your credit report. - Posted by Glen SoCal
Posted by Glen SoCal on February 13, 2002 at 22:35:46:
As your rating takes hits everytime it’s checked, that’s a good idea to fax a current copy around and asking each broker not to check it until you have agreed on terms. I’m filing that one away, thanks.