Financing For 1st Deal
I need 100% financing for the following deal. It would have been ideal for a Contract for deed but the seller wants Hard money rates / points for the contract. I realize I would only pay the points before immediately "refinancing" but considering the LTV it seems like I would just be better off getting 100% financing instead of paying 5+ points on the contract. Am I off base?
Purchase price = 35K
Expected Appraised Value = 52K to 60K
Tenant lined up at 600/mo
I would "prefer" soft money and no penalty for prepayment
FICO above 700
At that price, you'd only have around $2K out of pocket, counting downpayment and closing, if you put 5% down.
I'd suggest you get out your yellow pages and start calling some of the mortgage brokers listed. With a 700+ FICO, you should have no problem getting at least a 95% NOO loan, even a stated income, no doc type loan. Good mortgage brokers would have a 100% investment type loan, especially if you FMV are close, though the rates would be higher.
Roger