Posted by Sean Sullivan on May 23, 2000 at 10:30:15:
Thanks for the great information Ed. I have never done anything with a sub-prime loan. Where would be a good place for me to find more information about these?
Do you do loans in Texas? If so, I would love to talk with you more about the best way to achieve my financing goals.
Thanks again!
Sean Sullivan
Will lenders lend 80%LTV w/ owner carry back of 20%?? - Posted by Sean Sullivan
Posted by Sean Sullivan on May 22, 2000 at 15:51:32:
Has anyone had much experience with using a conventional lender to finance 80% of a residential deal with the current owner carrying back a subordinate 2nd for 20%?
If so, how does this work best. I was under the impression that a lender will not let you “borrow” your down payment.
Any insight will be greatly appreciated.
Thanks!!
Re: Will lenders lend 80%LTV w/ owner carry back of 20%?? - Posted by Ed Garcia
Posted by Ed Garcia on May 23, 2000 at 10:13:55:
Sean,
Today, financing is so available that it’s unreal.
There’s100% financing available for owner occupied, and 90% financing
available of none owner occupied.
As investors we make money when we buy investment properties, or
we shouldn’t buy them. With that taken into consideration, the cost of
the financing should be relative to the purchase.
There are so many programs available that it’s a full time job keeping
up with them, and they change as were learning them.
So let me give you a little rule of thumb. The loan with the best cost,
is always going to be a Fannie mae/ Freddie mac loan.
Now with not going into a lot of detail, these loans are becoming more
flexible as far as programs are concerned. Not in their underwriting or
qualifying, but are just developing more product or types of loans.
Sub prime is the way to go for the investor. It’s a little more costly, but
Remember were making money when we buy, so that cost should be
absorbed in the deal. Remember, in many cases the loan allows you to do
the deal.
Now the answer to your questions is YES. It depends on you,
your circumstances, and the lender that you use.
The majority of sub prime loans will go 95% CLTV.( Combined Loan-to-Value).
Example: If the house is purchased or valued at $100,000.
You got a new first of $80,000 and the seller carried back $20,000., that’s a 100%
financing.
The lender would require you to come up with 5% of your own money, which in
this case would be $5000. The lender would then do $80,000 first, the seller would
carry a $15,000 second, and you would come up with $5,000+closing cost.
After telling you that, I do have a program that does 100% CLTV.
One more thing Sean, there are several programs available where you can borrow your
down payment, you just have to document it. If you do a no income, no asset loan,
you don’t even have to document it.
Sean, I hope this answers your question,
Ed Garcia
Re: Will lenders lend 80%LTV w/ owner carry back of 20%?? - Posted by Craig
Posted by Craig on May 22, 2000 at 17:13:40:
Nope not doable with a conventional loan. 100%CLTV 80/20’s are sub territory.
Re: Talk to Ed Garcia (Lender) at 909-944-0199 - Posted by Millie I.
Posted by Millie I. on May 22, 2000 at 16:28:04:
nt
Re: Will lenders lend 80%LTV w/ owner carry back of 20%?? - Posted by GIO
Posted by GIO on May 27, 2000 at 16:17:49:
what is cltv compared to ltv ?
will these 100% cltv loans allow flips ?
are these 100% cltv loans full docs?, are there limited doc loans?, can the 100% also cover closing cost?, what will be the aprox costs of the closing costs to the buyer ?, what kind of credit scores will be requested? Thanks
Re: Will lenders lend 80%LTV w/ owner carry back of 20%?? - Posted by dew
Posted by dew on May 23, 2000 at 21:45:49:
Ed,
Glad to read your loan info. on this site. I have a buyer who would like to do 90% to 100% CLTV on a NOO single family detached home with, either no doc. or limited doc (he can show income on bank acct. statements) in Denver CO. Do you have anything for this scenario and does the buyer need need a minimum credit score too?
Thanks so much for your info. No rush he’s got a wedding coming up and we aren’t doing anything for about a month.