Posted by Shane on December 12, 2008 at 12:20:49:
Example: I bought a home in August with cash for $39,000. I repaired it for about $7,000. It appraises for $83,000. I’ve been getting 80% of the appraised value from my local commercial bankers which would be a line of credit for $66,400. Several of my banks are now doing just cost which would be 80% of $46,000 or $36,800 unless you own it for 1 year.
Just curious of this is a trend in other areas as well.
Comemercial Lines of Credit Changing? - Posted by Shane
Posted by Shane on December 12, 2008 at 07:45:57:
Hello,
I was just wondering if others have noticed that their local banks are going to 80% of cost on lines of credit secured by real estate if it is bought within a year instead of appraised value? 4 in my area have switched to this rule in the past month.
Re: Comemercial Lines of Credit Changing? - Posted by Keith
Posted by Keith on December 12, 2008 at 18:20:35:
We had a lcoal bank here move their seasoning requirements to 2 years. I told the banker that was beyond seasoning, it was more like “marinading”.
He laughed but couldn’t budge on the requirement. Very conservative bank though, and thus totally unaffected by this credit crunch. Very low default rate. Can’t blame them for aggressive decisions in today’s market.
Keith
Pardon my math ignorance - Posted by Rich-CA
Posted by Rich-CA on December 12, 2008 at 11:35:05:
but how does this affect the LOC. Is the limit lower, payments higher?