Posted by michaela-ATL on November 07, 2002 at 18:04:01:
garth,
what i would do is this: i would immediately work on my credit. i made a post a couple of days ago ago on this board, title credit repair. thsi is the perfect time to question things. i may take 1.5 months or so.
usually the rates are better ones the middle score is above 680. just paying credit cards down to 0 will make the score jump tremendously.
there are ‘no doc’ loans, but i think they usually want 2 years experience. great score might overcome that.
i know here in atlanta i can refi, no seasoning, with a 680 score for 75 or 80% for around 7% interest. no doc. i’m sure there are lenders in other cities offering similar.
I have been working with a fellow REIA member who is having trouble finding permament re-financing for a three unit building. He is now rehabbing full time and has no other income other than 5 rental properties. Here are the particulars
Purchase for 35K, Has construction loan due for 55K
Appraise at 120K- Only needs 60% LTV for Loan
Gross rent $1650/mo
Credit -650
No provable income other than rentals.
The rehabber wants to buy and hold these types of properties and is looking to cash out to do another project. Everyone is telling him that he needs to sell something to generate income. Is this his only option other since Hard Money is a short term solution? Any input is appreciated.