qualifying for 100% CLTV loans - Posted by rayrick

Posted by rayrick on April 01, 1999 at 15:06:45:

I’m wondering about what’s involved in qualifying for 100%CLTV N.O.O loans, particularly when it involves a house that I can’t come close to affording the payments on. I’ve got a seller who owns a $370K house free and clear and it appears she will consider owner financing. I have excellent credit, a job, and I own a home, but certainly can’t afford the payments on this house. My thought was if I could get a 100% CLTV loan and then sell the house on a contract, I might be able to pocket a nice chunk of down payment money from my buyer and get some cash flow as well. Do you explain that this is your plan when you are qualifying, or does the bank not really give a hoot HOW you’re going to make the payments as long as they’ve got a reasonably low LTV loan?

A couple more questions on this house:
Is selling it on a contract a good approach here? Alternatively, I could turn around and sell with another 80-20 CLTV type of loan, but for a little more and with a higher rate on the second than I am paying to my seller. This would lower my risk since I would be in the middle of only the payment on the second and not the first as well.

How much time should I try and get from the seller before my first payment? This house is on the very upper end of the market in my area, but sounds spectacular. (I haven’t actually seen the place yet).

Thanks to all in advance.