Posted by Todd In Florida on December 20, 2004 at 15:33:10:
Hi the deed is in my name, yes tried advertising but people dont seem to come through its weird im a good credit risk i would think anyways.
Why cant I get money ? - Posted by Todd In Florida
Posted by Todd In Florida on December 20, 2004 at 14:36:37:
Hi what am I doing wrong, I am building a house in Georgia and im a little bit short I need 17k to finish the home. I have put in months of work, money and love into this project and I cant get a bank or hard lender to give me any dang money.
Im trying to build this house that will be worth 80k when done, i owe 24k on the land when i sell it, but i was thinking of refinancing the house the day i finish it and then selling the home after that.
My credit I checked today its 613, 630 and 671 i am self employed so what gives am i the devils spawn i pay my bills on time and mostly early and have not been late for almost three years on anything.
ok just venting and hoping god helps me some how.
Re: Why cant I get money ? - Posted by Rob Ricker
Posted by Rob Ricker on December 20, 2004 at 22:59:02:
Todd,
I wish I was in Florida or Georgia. You are the type of person that I like to help (I’m a mortgage broker in Tennessee). Sometimes it’s the cash only people that have the hardest time getting financed.
First off, you will have to offer a lender 1st position. In other words, you will have to get a loan big enough to pay off the lot and give you the 17K
Secondly (and most difficult), you have got yourself in a bad position by starting a house, then looking for financing. Lenders want to be involved from the start. I actually know no national lenders that will lend in the middle of construction. That said. don’t give up! I suggest that you talk to some local bank presidents. They can “break the rules” so to speak, and authorize an “out of the ordinary” loan like this. It is your only hope other than finding private money or getting some unsecured credit (which would be totally based on your credit history)
Re: Why cant I get money ? - Posted by phil fernandez
Posted by phil fernandez on December 20, 2004 at 16:53:16:
Why not get a 1st mortgage for $41,000. From the proceeds you use $24,000 to pay off the existing 1st on the land, perhaps even getting a discount for an early payoff.
$41,000 on a house worth $80,000 is just 50% LTV.
Re: Why cant I get money ? - Posted by Randy (SD)
Posted by Randy (SD) on December 20, 2004 at 15:03:20:
You owe $24 K. on the land, how is that financed? Do you owe to a private party or is there a mortgage lender/bank involved? I suspect part of your problem stems from the fact that a new loan would be in second position. Is the first lienholder willing to subordinate to a new first position lien?
Re: Why cant I get money ? - Posted by E.Eka
Posted by E.Eka on December 20, 2004 at 14:44:15:
You live in Florida and you’re building a house in Georgia? Why? Just curious.
YOu owe $24K + $17K that you need and it will be worth 80K. What is your exit strategy? Why did the bank say no?
Re: Why cant I get money ? - Posted by Todd In Florida
Posted by Todd In Florida on December 20, 2004 at 15:15:37:
I put down 900 dollars on 4 acres of land they wont move the loan to the second position.
Re: Why cant I get money ? - Posted by Todd In Florida
Posted by Todd In Florida on December 20, 2004 at 14:59:20:
Hi im building the house in georgia because the land was easy to get into and I had alot of the building material there already didnt make sense to move it all.
Im being denied a loan because I did not establish enough revolving credit, stupid me only has one furniture revolving account and I dont owe them any money guess that was a mistake to pay them off early this year.
Re: Why cant I get money ? - Posted by Randy (SD)
Posted by Randy (SD) on December 20, 2004 at 15:28:53:
Not too surprising… And let me guess all funding sources you have approached are not interested in making a new second position loan?
Is the deed to the land in your name or do you have a contract for deed?
As a shot in the dark, have you tried advertising for “private funding”? It’s as simple as a two or three line ad “secured by real estate” offering 10%-12% interest for six to 12 months? If the deed is not in your name, you’re going to have to find other collateral as security for any loan.