Help for 1st deal please please please - Posted by Richard

Posted by Richard on January 07, 2004 at 13:52:38:

Thanks a million.

Help for 1st deal please please please - Posted by Richard

Posted by Richard on January 07, 2004 at 09:01:46:

My last deal got sold from under me now:

I have this foreclosure the bank is asking 32k it is assessed at 50k. It needs some work in one of the apartments. It is a three unit and rent would be about 1500 total. It is being sold as is. I want to keep it and rent it.

How would I finance this deal? I have no real money of my own. Can anyone help me with different scenarios for getting this house? I have been trying to get something for about two years now!!

Re: Help for 1st deal please please please - Posted by Darren McCammon

Posted by Darren McCammon on January 07, 2004 at 20:09:19:

If you are buying the foreclosure from the bank see if they will make the loan with your 5k down. It sounds like you are a first time homebuyer. In this case you’re probably better off buying it owner occupied and thus getting the government to gaurantee a certain amount for the bank and possibly getting some other tax breaks.

Re: Help for 1st deal please please please - Posted by Ed Garcia

Posted by Ed Garcia on January 07, 2004 at 10:41:52:

Richard,

The first problem with a deal like this is the size of the deal. The vast majority of your lenders and Mortgage Brokers don?t want to do a deal under $50,000.

Secondly you don?t tell us anything about yourself. What your credit is like, if you already own a home, what your income is etc?

If you don?t already own a home and this is going to be your first property you can buy it owner occupied and get 100% financing. You?ll have to have a minimum credit score of 620. If this is going to be your first None Owner Occupied property (an investment property) then my suggestion is for you to go to a local bank that is a portfolio lender and see what you can do. Rule of thumb on a NOO through a Mortgage Broker is 10% down which can also be a 90-5-5 meaning 90% first, 5% down and 5% seller carry-back.

Ed Garcia

Re: Help for 1st deal please please please - Posted by Richard

Posted by Richard on January 07, 2004 at 11:06:37:

Thanks for the response Ed.

My credit score is about a 650. I only make 25k a year however. I am 25 and have 3k saved. It would be a NOO and I would want to keep it and rent it out.

What kind of bank is a portfolio lender? I live in NY.
Could I ask the bank for a 50k mortgage so that I can use the extra for fix up?

Re: Help for 1st deal please please please - Posted by Antoine (GA)

Posted by Antoine (GA) on January 07, 2004 at 13:28:38:

A portfolio bank is a bank that does not sell thier loans but instead keeps and services them. The two off the top of my head is Bank of America and Washington Mutual. I think Wells Fargo may be one also. Hope this helps.