Refi. 100% LTV on invest prop? - Posted by jj


#1

Posted by Bud Branstetter on December 03, 1998 at 09:05:32:

Typical around Dallas is 75% no doc.


#2

Refi. 100% LTV on invest prop? - Posted by jj

Posted by jj on December 02, 1998 at 21:00:02:

Are there mortgage companies who will refi my investment property 100% loan to value? If not what is the highest LTV I could refinance? Also, if I convince a seller to sell me the property for $100,000, however, we complete a contract that states I’m buying the property for $150,000 and the seller will give me $50,000 back for fix-ups, assuming I put $10,000 to $20,000 down, are there mortgage co’s that will allow this, or is this done on the back end after funds are distributed at the title company?

Thanks, any feedback is extremely appreciated!


#3

Try North American Mort Co… - Posted by Carol

Posted by Carol on December 03, 1998 at 19:05:45:

They have a web site … namc.com, I believe.
Don’t know where you are but check dir. assistance for a phone number. They do 90% LVT cash outs on investors props.


#4

Re: Refi. 100% LTV on invest prop? - Posted by Paul Macdonald

Posted by Paul Macdonald on December 02, 1998 at 21:57:01:

Maximum LTV on an investment property is 90% rate and term or purchase for first mortgages. There are 90% full doc cash out investor second mortgages out there. Your 90% lenders are going to want one year seasoning or a darn good reason why the “true” value is higher than the purchase price.

I wouldn’t suggest trusting the seller to hand you 50k in cash when you’ve just signed a written, binding agreement that says the money is his(hers).

How about having the seller do a take back second and prior to settlement sell you an option on that second at a discount and then refi? Or go to a BCD lender and get them to lend based on LTV and have your seller put X thousands into the renovation you talked about. That would justify the higher value immediately after purchase and allow you to get a better LTV and rate loan.

Lots of avenues if buyer and seller are willing to be creative.

Good Luck and;

Good Hunting

Paul Macdonald


#5

Re: Refi. 100% LTV on invest prop? - Posted by Mark (SDCA)

Posted by Mark (SDCA) on December 03, 1998 at 14:31:40:

Anyone have names, numbers for lenders who originate 90% cash out loans on non-owner occupied property?? I thought the max was 70ish%??

Thanks,

Mark


#6

Re: Refi. 100% LTV on invest prop? - Posted by Bo (GA)

Posted by Bo (GA) on December 03, 1998 at 08:02:59:

Paul,

The method of buying an option on the second prior to closing is something I have thought about before also, but considered it to be too legally questionable, as it possibly “decives” the lender about the “true” LTV ratio of the loan. This assumes of course that the lender is not notified about the option, as if he was, he probably would not approve the loan.

Any additional thoughts you may have on this would be much appreciated, especially if you can tell me about some real-life experience you may have regarding the method you describe.

Bo (GA)


#7

Re: Refi. 100% LTV on invest prop? - Posted by John Katitus

Posted by John Katitus on December 02, 1998 at 23:47:55:

What would be the best no-doc LTV available for non-owner occupied? Thanks.


#8

Re: Refi. 100% LTV on invest prop? - Posted by Paul Macdonald

Posted by Paul Macdonald on December 09, 1998 at 13:39:47:

Bo,

Sorry it took so long to answer. Had the same feelings you did. Than I talked (emailed) with a young fellow name of Neil. He told me his story - in a nutshell it depends on the lender. It probably won’t float with a Fannie/Freddie lender. But try a BC or bank that is used to discounting mortgages. I’ve not checked with Neils bank, but after I talked with him I talked to one of my BC lenders and they said we could care less so long as the appraisal works…

Amazing how creative people can be. Check out Neils story in the success stories “I didn’t put up one penny” is the title.

Best of luck.

Paul Macdonald


#9

Re: Refi. 100% LTV on invest prop? - Posted by Paul Macdonald

Posted by Paul Macdonald on December 09, 1998 at 09:32:14:

Bo,

Sorry its taken me so long to get back to you. About using the second/option/presettlement I’d circled that idea before and also decided not to follow through. For many of the same reasons.

But I did some talking to a fellow named Neil who suggested that very technique. And backed it up with names and phone numbers. It probably won’t work with a Fannie lender, but a BC lender or a company that accepts discount mortgages like Neils group seem to have no problems with it.

I have not followed up with Neils bank, but I have talked with some of my BC lenders who say they’d have no problem with the concept. Their hot button is value. If the appraisal works, they will go to a certain LTV and could care less about the rest.

I’ve taken the liberty of pulling a piece of an email Neil sent me to share with you: "If you go to http://www.creonline.com Then go to the success stories and the one that says “I didn’t put up one penny"
is me.” This is is story how he did the very thing we’re talking abo


#10

Pulled $50,000 back at closing - Posted by jj

Posted by jj on December 03, 1998 at 17:17:45:

The reason I asked on investment properties, is that actually did this on a high value home I’m living in now. (I got a killer deal) The seller agreed to pay me $50,000 back after closing which was stated in our contract. It was all handled with my broker and the title company (I was guaranteed the funds via the contract, and the title company guaranteed distribution). Bo, you posed your question of legality I I decided to visit some other brokers in the area. They informed me that your typical “no doc” lenders are not as concerned, and that many of them will agree to this. I simply posed the question, since I was able to do this with my owner occupied home, I now have another $50,000 in a line of credit against this house that I can use for REI. Wanted to know if anyone’s had any luck doing this with REI. It’s definitely doable with owner occupied. I’ve been studying this sight for a few months, have learned much and thank everyone for their insight and sharing of experiences.

jj