Posted by GMann on January 04, 2003 at 18:19:32:
If it is truly a bank you are working with, they may not have the program you are looking for. I would call a couple of mortgage companies/brokers and tell them your scenario. If you have good credit you should be able to find the right program for your situation. You should be able to do this as a refinance not a purchase.
Re-finance of rental - Posted by Dennis
Posted by Dennis on January 04, 2003 at 14:43:19:
Hi,
a year and a half ago I bought my first rental. I did so on a contract for deed, with the agreement that I would find a loan and cash out in 18 months. The deal was $69,000 ($8000 down, the rest in 18 mos.), I found a private lender for the $8000, gave it to the owner, and took the house. I have rented to the same renters since at $685 per mo. It is now time to re-fi.
I am facing two major problems; the bank will give me a good rate (6.38%) but wants approx $3400 in fees. Also, though I have an old appraisal (done 2 years prior to my buying the home) with an appraised value of $87,000, the bank’s appraiser is now giving it a value of $78,000. The bank is wanting me to consider an 80% loan to value (and seems reluctant to give me any cash out at all), which only gives me enough to cover their fees after a $60,000 pay off). Now I am scambling to find the $8000 to pay off my private financer.
Looks like this newbie needs to do more studying on no-money down deals. Can anyone help? Thanks.
Re: Re-finance of rental - Posted by Charles Clark
Posted by Charles Clark on January 06, 2003 at 24:59:04:
Hi Dennis,
Two things. 1) Yes, contact a mortgage broker. Find one that has an experience loan officer that does “CREATIVE FINANCING”
2) Call a realtor and ask for a market value report on the home.
3) You should be able to get a 90%LTV loan, based on the market value. *The broker verifies with the appraiser that the value is in line before the appraisal is ordered.
Charles Clark
neiloans@hotmail.com