Posted by Carmen_FL on March 21, 2000 at 09:15:14:
I know about notes, but usually they require that the property be in decent shape, and the credit be in semi-decent shape! Do you know of something I don’t?
Hard Money for Owner Occupants? - Posted by Carmen_FL
Posted by Carmen_FL on March 20, 2000 at 15:33:38:
I get calls from a lot of potential buyers whose credit is just lousy. However, they all have the “dream” of owning a home.
I have been able to purchase rehab homes at 65% LTV, 100% financed with hard money, including closing costs. We work with several other investors who can do the same thing, and this on their first deal (with our referral).
But when we ask about a “hard money” program (65% LTV) for owner-occupants, they all say “we’re working on something like that, but we don’t have anything ready yet.” The only one who said they’d consider it asked to check credit, would only do it at 60% LTV, and required 10% down, which most of these buyers won’t have.
What gives? Am I missing something? I would think a home owner would be MORE likely to pay back the loan than a beginning investor - and plans to do so for a while. And the interest rates would be sky-high anyway (which is par for the course). Any clues - or does anyone know of such a program for Owner-Occupants with lousy credit? After all, worst case for the lender would be they get the house back, and probably already with some repairs … (and no, I’m not interested in doing wraps, etc. for these folks)
Re: Hard Money for Owner Occupants? - Posted by Bill K. - FL
Posted by Bill K. - FL on March 20, 2000 at 15:43:34:
Carmen,
Are you are forgetting the hard money lenders only lend short term. While owner occupants need longer term financing.
Correct?
Not forgetting… - Posted by Carmen_FL
Posted by Carmen_FL on March 21, 2000 at 09:13:28:
But the idea is to get the owners refinanced within 2 years, (normal hard-money terms in my area), which should be easy if they actually fix the house and raise the value - or at the worst case scenario, renew the loan at the end of the term, or get another hard money loan when it balloons (just like I can if my hard-money loan comes due).
Re: Hard Money for Owner Occupants? - Posted by Freddie Williams
Posted by Freddie Williams on March 20, 2000 at 22:16:06:
If you do owner financing and then have someone such as myself come in and purhcase the mortgage simoutaneously then you have the best of both worlds and get these people financing with less than perfect credit. Contact me and I would be willing to call you to expalin.