Realestate Loan #2 ???????? - Posted by Dave in Washington

Posted by jorge on July 19, 2003 at 19:28:23:


Do you have any HMLs that you use that would be able to do a loan in Albuquerque NM??

I am looking at a 1700 sf home that ARV would be about 85k. They want 55k but I think they might take 45-50k.

Needs about 10-15k to fix up.

Any thoughts?


Realestate Loan #2 ??? - Posted by Dave in Washington

Posted by Dave in Washington on July 19, 2003 at 01:41:38:

Sorry. Lets try this again with a little more Info. I am trying to use Carleton?s manual and have a question. Lets see if anyone can help me with this one. AGAIN. If a seller has a Home that is worth $200.000 and only owes $100.000 on the home, they need $120.000 in which their $100.000 mortgage will be paid off and $20.000 for there pocket and they are willing to carry a note for $80.000 in 2nd position on the loans Won’t a bank be willing to get into 1st position on this property? Are there any other places to get 100% Real estate loans? What is this I here about Money brokers?
Lost in the loan process Dave???

Re: Realestate Loan #2 ??? - Posted by James Strange

Posted by James Strange on July 19, 2003 at 02:37:12:


To make this simple we deal with two types of lending.

1, Conventional (Banks and other lenders) Banks lend on the lower of the sales price or appraised value. Most of the programs will only lend to set CLTV. CLTV is the combined loan amount (your example only uses LTV). What most conventional lenders are looking for is some of your money in the deal. 100% CLTV programs are available for investors but they require good credit, income. low debts and liquid cash reserves.

2, Equity based lenders. Equity based lenders or Hard Money look at the equity cushion. In the example that you use would make a good deal for an equity lender. You want to try to keep the loan amount lower than 70% of the appraised value less than 65% is better.

James Strange