HELP! Got the deal...need the financing! - Posted by Denise FL

Posted by B.L.Renfrow on December 11, 2000 at 21:24:31:

Contact Ed Garcia, who hosts the financing forum on this site. Don’t know whether he lends in FL, but even if not, I’m sure he’ll point you in the right direction.

BTW, I could be wrong, but I’m not aware of any conventional lender doing 100% financing on a NOO.

Brian (NY)

HELP! Got the deal…need the financing! - Posted by Denise FL

Posted by Denise FL on December 11, 2000 at 19:15:34:

I am in S FL and have spoken to 2 Mortgage Brokers, at length, in preparation of finding a deal. Went to contract a couple of days ago, and all of a sudden things are different.

I was originally told 100% financing wouldn’t be a problem. There are many programs, etc, etc. Now I’m told I need either 5 or 10% down. I was originally told buyer’s (my) closing costs are approx. 6% of purchase price; now 1 broker is close to 7.5%, the other was close to 10%!!! I was originally told I could build closing costs and rehab into the loan; now I’m told that I have to come up with closing costs up front and will get it back at closing.

This property is a steal. It’s a duplex appraised value @ $45K, after repairs @ $65K. I’ve got a contract on it for $32K. Needs about $4K in rehab. I’ve got EXELLENT credit, and steady income from work; and the property has tenants for 5 & 6 years @ $800 combined.

What am I missing???
Please advise!

Re: HELP! Got the deal…need the financing! - Posted by JPiper

Posted by JPiper on December 12, 2000 at 10:12:23:

I agree that you should contact Ed Garcia.

But keep something in mind…your loan is a small loan, and therefore quoting percentage figures on loans in general may become less accurate because of the size of the loan. For example a $300 appraisal fee on $100K is .3%. On $30K it’s 1%. Size of the loan makes a difference, and some of the closing fees don’t vary just because your deal is small.

These days these small loans fall under some federal law concerning the maximum % that closing costs can be of the loan. Garcia knows this number, but if memory serves it’s 8%. The closing costs that go into this determination are the ones that the lender receives typically.

The other problem is that many lenders don’t want to loan $30K at all at any price. Give Ed a call at 909-944-0199.