Posted by Nick on July 31, 2001 at 11:47:10:
Tina
How much cash does your uncle need? Is he in a position to take back part of the purchase price as payments. This could cover your down payment. Your uncle could also sell to you at a higher price and gift the difference back to you. The gift could be part of the down payment.
Hope these ideas help
Nick
Beginner Investor Starting Out - Posted by Tina
Posted by Tina on July 31, 2001 at 11:04:10:
I am very interested in investing in real estate. I currently live in a basement apartment which is owned by my uncle who lives out of state (and who is having some financial problems). My husband and I have offered to purchase the house and remain in the basement, as we can get a LOT more rent for the upstairs unit. We do not want to live here for much longer - we want a small horse farm in a year or two. So I am looking for advice on how to go about getting a loan for this house with little or no down payment. We don’t have much saved yet and my husband has had trouble with his credit due to student loans (but his credit is much better now that he has paid on a car loan on time for one year!) My uncle will sell a bit below the house’s worth. Can we use that equity and rental income to get a mortgage with no down payment??? Thank you !!
Tina
Re: Beginner Investor Starting Out - Posted by Ed Garcia
Posted by Ed Garcia on July 31, 2001 at 12:25:50:
Tina,
You don’t tell us what state you’re in, but I see opportunity here.
I can see that your uncle is motivated to sell as an out of state owner and will work with you as far as how to do the deal. I think your first move is to go to a mortgage broker and get you and your husband pre-qualified for a loan. Then you will know how to structure the deal with your uncle for a possible seller carry-back.
Once you explain your situation to a GOOD mortgage broker, they should be able to take the ball and run, showing you and your husband what programs you can qualify for.
Even if you have to go sub-prime you should be able to get into the deal will 5% down, with a seller carry-back. If you have a credit score of 620 or better, you may even be able to do 100% financing because the deal is owner occupied.
Good luck Tina,
Ed Garcia