Posted by jesse on July 17, 2001 at 22:12:25:
Couple # 1 have debts that could possibly become liens on title. Lenders cannot discriminate based upon age it is illegal. Couple #2 is probably fha-able get a mortgage broker asap to run them both by fha and subprime underwriters. good luck
HELP! Can either of these tenants be financed? - Posted by KatieFL
Posted by KatieFL on July 15, 2001 at 14:04:08:
I have a property that I am trying to l/o out and two couples that applied for it. This is my first l/o and I do not know if either of these couples stand a chance of getting refinanced. I posted on main newsgroup and got some answers about their rental abilities, but nothing from a financing point of view. Please someone who knows financing, help! I have got to decide by Monday on what to do.
Here are the details:
1st couple: young couple, the husband had bankruptcy 10 years ago and two bad collections and charge off ($6K,9K) about 3-4 years ago from going through divorce. Since then he has been paying everything on time. Wife is much younger and only has 2 collection and 1 charge off (all under $300). They make 60K a year.
2nd couple: older couple with no credit. The ONLY ITEMS in the credit report: The husband has 2 recent collections ( $300 and $600) and one good credit card ($600); The wife only has one collection 6 years ago ($150). They make 40K a year. This couple is more likely to actually stay in this house. I am concerned, though, that if they refused paying such small amounts for things, are they going to pay rent? (previous landlords said they paid mostly ontime). Since they’re both over 50, would it be hard for them to build credit? They own cars outright and only have 1 credit card.
The house: $65,000, $2,500 down, $650/mo. Neither couple has the whole $2,500 down, but both have about $1,500 down and are willing to add $50-$100 month extra to pay the rest. Both checked out good on work and rental references.
From a financing stand point, which one could actually get financing within couple of years?
Thank you.
Katie
Re: HELP! Can either of these tenants be financed? - Posted by Chuck (AZ)
Posted by Chuck (AZ) on July 15, 2001 at 22:17:54:
Couple #1.
They actually have a credit history (previously ding’d but now ok), a higher income, and a chance of living long enough to satisfy a 30 year debt.
Make sure you get a Promissory Note for the down payment… a kiss and a handshake doesn’t cut it these days.
Re: HELP! Can either of these tenants be financed? - Posted by Jessie Watson
Posted by Jessie Watson on July 23, 2001 at 18:27:23:
If you would rather cash out your money right now, one of the couples may qualify for a 85/10/5 loan. This means you get $55,250 plus the $3,250 down payment. If this interests you please contact me. You would have to carry a second mortgage for about $6500.