Posted by Mark (WV) on October 20, 2001 at 20:28:39:
GL ,I had a local bank turn me down on a deal much the same as your’s same specs as your’s then offer a personal UNSECURED loan to buy the same house but 2 % more.
Tip on financing run down properties - Posted by GL
Posted by GL on October 19, 2001 at 17:27:44:
Saw a question today re getting financing on run down properties. I know banks won’t touch them as a rule unless they are up to building code and certain standards regarding condition.
A few years ago I bought a run down house. I had an appraisal, the price was below the appraisal, and all I wanted was to borrow 3/4 of the amount I was paying. Pretty standard.
They refused to give me a mortgage due to the condition of the property but they did give me a personal loan secured by a mortgage. What’s the difference? 1% higher interest.
I should point out that I had borrowed at this bank before. They knew I was buying rundown properties and fixing them up, and they had seen me complete a few deals. So they knew I was not apt to flunk out and leave them with a torn up house on their hands. Still they would not loan me the money on a mortgage but they would on a personal loan secured by a mortgage.
This was in Ontario Canada by the way. Has anyone had a similar experience in another locale?