A home-financing technique in which buyer borrows from the seller instead of, or in addition to, a bank. Sometimes done when a buyer cannot qualify for a bank loan for the full amount. also called seller financing or owner financing.
A home-financing technique in which buyer borrows from the seller instead of, or in addition to, a bank. Sometimes done when a buyer cannot qualify for a bank loan for the full amount. also called seller financing or owner financing.
I learned this 30 years ago, and I think it still holds true.
In California, all financing incurred & utilized for the purchase of an Owner Occupied Single Family Dwelling is considered "Purchase Money" financing. In the event of nonpayment, The only remedy the lender(s) have is to forclose on the property. They cannot obtain a "Deficiency Judgement" and attach anything else of the Buyer (who defaulted)
Your question is interesting: an Underwriter will want to know how much rent you will collect for the 2 units , he will also want to know if you will disclose your income or go stated.
For the rents generated the standard practice is to credit 75% of the gross rent, i.e. add it to your income. Some sources go as high as 100%. I am assuming that this is an owner occupied scenario, i.e. you will live in one of te units.
You have left out your credit picture, i.e. good, average or bad, that is VERY important.
This is just a rough answer. Additional data (income, rents, occupancy, credit...) will help.
Good luck.[ Edited by MARLYSE on Date 02/18/2007 ]
SHe is right the other units help you qualify for the building income wise hoever the rate will coincide with what type of documentation you are submitting and the loan to value you are buying the property at.
I do these for my clients all the time. But you will also want to work out what points you will pay to broker. I usually charge 1.5 points in the fron and par inthe back because to charge in the back hurts if he is trying to use a lower interest rate to make sure the building cashflows
A home-financing technique in which buyer borrows from the seller instead of, or in addition to, a bank. Sometimes done when a buyer cannot qualify for a bank loan for the full amount. also called seller financing or owner financing.
A home-financing technique in which buyer borrows from the seller instead of, or in addition to, a bank. Sometimes done when a buyer cannot qualify for a bank loan for the full amount. also called seller financing or owner financing.
It just means a mortgage to acquire the property as opposed to refinance it, rehab it, etc. You see the verbiage a lot when dealing with HELOCs.
Thanks to all!
I learned this 30 years ago, and I think it still holds true.
In California, all financing incurred & utilized for the purchase of an Owner Occupied Single Family Dwelling is considered "Purchase Money" financing. In the event of nonpayment, The only remedy the lender(s) have is to forclose on the property. They cannot obtain a "Deficiency Judgement" and attach anything else of the Buyer (who defaulted)
Thks pmatheason!!!
Your question is interesting: an Underwriter will want to know how much rent you will collect for the 2 units , he will also want to know if you will disclose your income or go stated.
For the rents generated the standard practice is to credit 75% of the gross rent, i.e. add it to your income. Some sources go as high as 100%. I am assuming that this is an owner occupied scenario, i.e. you will live in one of te units.
You have left out your credit picture, i.e. good, average or bad, that is VERY important.
This is just a rough answer. Additional data (income, rents, occupancy, credit...) will help.
Good luck.[ Edited by MARLYSE on Date 02/18/2007 ]
SHe is right the other units help you qualify for the building income wise hoever the rate will coincide with what type of documentation you are submitting and the loan to value you are buying the property at.
I do these for my clients all the time. But you will also want to work out what points you will pay to broker. I usually charge 1.5 points in the fron and par inthe back because to charge in the back hurts if he is trying to use a lower interest rate to make sure the building cashflows
Exactly what I suspected -- thanks, all!
here is my tip just wasted my money on the learning center in rosemont i did learn that people can talk for over an hour and give you zip