Simple Question Regarding First And Second Mortgages
Hi All:
My brother is buying a house and asked me a question that tripped me up.
(I've been dwelling in the 'creative world' so much that a basic question stumped me!!)
He is self-employed, has rough credit but has been approved for a no-doc loan for 80% of the appraised value of the home.
He obviously needs twenty percent down, plus closiing costs to make it work.
Can he simply ask the owner to hold a second for the twenty percent, then refinance next year?
I know this is basic stuff but it's been a while since I gave owner-occupied deals any thought.
Thanks!
The lenders set the rules here. a lot of them allow owner carry seconds that are fully disclosed to the lender for a certain percentage. I have done one with 110 percent financing and the lender was aware that I was getting cash at closing. have done some after closing deals but these are questionable. Click click I hear the handcuffs and the sound of spread um behind me. I better duck.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
Tedjr:
Right, thanks. I'll tell him to discuss this with his lender. Best to avoid the click-click by keeping the cards on the table.
On another note, I saw where you've worked with hard money lenders. Can you PM a few referrals?
Thnx,
JQ
There are two factors LTV (loan to value) and CLTV (combined loan to value). Your brother's lender would need to allow 100% CLTV in order for the loan to work with the seller holding 20%.[ Edited by bansal on Date 12/29/2003 ]
Is it common for a lender to allow CLTV, or is it a stretch?
Is there any way to work around this?
Thanks for the replies.
We have a 100% no doc owner occupied loan that wouldn't require a seller second, send me a private message if interested. Thanks.