After BK-purchase home or keep $ in bank - Posted by Deb Van

Posted by Ryan on December 19, 2000 at 08:27:29:

Deb,

YOu may want to ask ED Garcia about this collateral issue. The likelyhood is that the lender for the multi-unit bldg will ask you to take out a second on your own home to finance the down payment unless the seller is willing to take back a second. Also a lender acually gets no cash at closing in the collateral situation. Basically you are telling the lender they can have some form of a lean against your property if they finance the multi-unit 100%. This would be hard to get even for someone with good credit. Ed might have some ideas.
Concerning the 100% loan for your own home, these require real good credit but you are more likely to get a home loan with little down using an FHA loan.

After BK-purchase home or keep $ in bank - Posted by Deb Van

Posted by Deb Van on December 18, 2000 at 09:03:40:

After filing a Ch.7 bankruptcy (1 yr. in 7/01), we plan to move to FL and want to REI in multiple-family units. My question is this. We have 20% to put down on a modest home or keep the $ in the bank. Would it look more favorable to a Lending Institution for us to use our purchased home as collateral when looking to obtain financing for a multiple-unit, keep $ in the bank, or purchase a home, do an L/O and use that as collateral?

Re: After BK-purchase home or keep $ in bank - Posted by JFinke

Posted by JFinke on December 19, 2000 at 11:48:30:

Instead of pursuing an either/or situation, why not consider purchasing a multi-family unit, living in one of the units and renting out the other unit(s). It tends to be easier to obtain financing on an owner-occupied property plus the rent from the other units should cover the mortgage payments.

JFinke

Re: After BK-purchase home or keep $ in bank - Posted by Ryan

Posted by Ryan on December 18, 2000 at 13:07:15:

I know there are a lot of mortgage companys out there that will finance your own personal residence at close to 100% of purchase price. I would keep the cash because with most investment properties the lender requires a good amount of money down just to get into the deal unless you can think of some creative way to finance the property. I believe you are going to need a lot of money to put down because you are going to have difficulty getting financing for investment property with such a recent BK. I wish you the best of luck but often it takes at least one year from the BK before you can financed for any sort of residence without paying outrageous interest rates.

Re: After BK-purchase home or keep $ in bank - Posted by Deb Van

Posted by Deb Van on December 18, 2000 at 15:49:07:

Also, Ryan, if we put 20% down on a home, can’t we use that as collateral for the purchasing a multi-unit bldg?

Re: After BK-purchase home or keep $ in bank - Posted by Deb Van

Posted by Deb Van on December 18, 2000 at 15:47:49:

Ryan,
Do you know of mtg co in Florida that will give you 100% financing 1 year after a BK?