Loan Practices - Posted by Mike (WA)

Posted by Ed Garcia on September 06, 2001 at 13:12:02:


Answer to the first question:

There are a lot of depends on. It depends on the borrower, to subject property and where it is, the lender, the circumstances. You give a lender a great buyer in a good area with down payment, and you can get it down. You give a lender a marginal deal with a questionable down payment or carry back, no dice.

Answer to the second question:

It depends on how you show your debt service, and the lender. Some lenders have a minimum requirement, some don’t.

Ed Garcia

Loan Practices - Posted by Mike (WA)

Posted by Mike (WA) on September 05, 2001 at 18:48:41:

I am a complete beginner who has never taken out a real estate loan, so I am looking for some help on what would be considered “typical” loan practices by lenders. Any help with the following questions would be appreciated:

  1. As I understand it, seasoning only applies to a cash back refi. Or, do I need seasoning on any loan before a lender will consider another loan application?

  2. How does a lender determine how many loans it will carry for you? I have enough cash to make down payments on several properties, so is there a limit to how much debt a lender will allow you to carry based on your income from the properties? How do they figure the limit?

Thanks in advance for your help.