Stated 75% LTV,670 mid, in OHIO....rates? - Posted by george

Posted by Judah hardmoney Hoover on May 10, 2006 at 17:18:47:

The first thing you need to do is establish a relationship with a good mortgage broker. ?cost to Cure? is what banks/lenders call the amount it will take to fix up a house. If an appraisal has a cost to cure figure in it the bank will subtract that number from the sale price and consider that the value. Hear me on that? your house is worth the lesser of

  1. appraised value
  2. appraised value minus cost to cure
  3. price on sales contract

For you what you need to do is present your self to Banks the way Ed talks about. If you were just a little east in PA I would help you out. I got someone in your shoes a 200k line last month. All the bank wants to know is what is your turn time on the projects and what is your strategy if things go wrong, (hint rent them out for cash flow after work is completed AND refied off line)

Stated 75% LTV,670 mid, in OHIO…rates? - Posted by george

Posted by george on May 08, 2006 at 22:03:01:

I want to know what my approx rate and COSTS will be for follwing scenario. If you can help me out, post an email or ph #

Purchase price 20k, ARV 45k. Need financing for about 15k.

My mid fico is 670. No negs on credit. Stated! If not stated, my DTI is about 50%

want a 15 yr fixed, or maybe 5 yr arm?

Approx rates, costs? I’m in OH


Re: Stated 75% LTV,670 mid, in OHIO…rates? - Posted by John Corey

Posted by John Corey on May 12, 2006 at 02:25:02:


You will have problems funding this deal. The loan size is too small for most lenders if they are writing a mortgage. Some might consider a line of credit.

Even hard money lenders normally do not go this low.

You likely will have to look at bridge financing until the place is repaired and then permanent financing.

The bridge financing could be from the seller (contract, L/O, note) or it could be from a hard money lender or private investor if you find someone who wants to do the deal.

John Corey

Re: Stated 75% LTV,670 mid, in OHIO…rates? - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on May 09, 2006 at 08:37:08:

Is this going to be a rehab?
Is this a single family home?
Investment or Primary residence?

If you are looking for a 5 year ARM amortized over 30 years you are looking at a rate of about 7% and a slightly lower rate is you go with a 15 year fixed.

Keep in mind that you will have problems obtaining financing if there is any “cost-to-cure” in the appraisal.

If this is a rehab project you would be best off to get a rehab loan and refinance later down the road.

Re: Stated 75% LTV,670 mid, in OHIO…rates? - Posted by george

Posted by george on May 09, 2006 at 11:57:55:

It is a rehab. Investment. I can fund with my own cash. Just want some help on purchase price (between 15 and 30k).

what do you mean ‘cost to cure’? the purchase price of the properties i buy is usually about 40% ARV. I only want to finance about 75% of the 40%. So, I buy a house for 20k, I want to finance 15k. I will fund the rehab, and it will appraise at 50k or so.

rehab loans seem to risky/expensive for me. why pay 2 closing costs?