2nd Mortgage On Rental Property--HELP
Good Morning all.....stressful situation-pleae help....my husband and I own a rental property and are in the market for a 3rd property..just found out not a whole lot of lenders will do a 2nd mortgage on a rental.....we have over $100,000 in equity on both houses, however fico score has dropped to 630 due to 2 delinquent payments from our renters--since evicted and credit card balance (which we plan to pay off with stock money)...credit was excellent before...please please tell me not to worry my self sick over this and someone will loan us some money. Thank you so much for your time
chweber,
I am by far not the most experienced or knowledgeable person on this site but I do however know that there are plenty of financing opportunities out there. You should be able to find a loan/financing situation that will fit your needs. Just don't give up after bank A says no. By the time you find your loan it may be with bank P. Or not a bank at all.
You should start by checking the lenders link on this site.
As far as the missed payments due to delinquency from the renters I recommend having some reserve capital for a situation like that. At the very least put it on a credit card or something to avoid delinquencies on your history.
That's my take anyway.
Scott
Here in Iowa nearly every commercial and investment loan is financed by a local bank. I know there are commercial mortgage brokers out there but I do not know of a good one.
Your credit at 630 is not entirely bad. It could be better but it still is decent. I've seen much worse (including mine!).
The only advise I have for you is to keep walking into banks trying to get money. Pose yourself in the power position. Try to make it sound like you are qualifying them and not the other way around.
I've heard good things about doing this:
When you meet with a banker the first time come into his/her office and start looking at the documents on the wall. The banker will introduce him/herself and you will have to turn around to shake his/her hand.
Do this and also have all your paperwork ready. Show the bank your estimated values to show the equity. Have tax returns ready. Have whatever else you need.
GOOD LUCK