LTV 95% Michigan
Hello,
In reading other posts, I see discussion about 95% LTV for LIBOR ARMS, I checked with my broker and he insists on a20% down. I can't seem to located anyone in Michigan using the search engines.
Does anyone have a connection or a method I can use to locate good brokers that offer 95% LTV's in Michigan?
Thank You
iaustin
Hi iaustin:
I have the same question. I will be looking forward to responses of our
members. Thanks for bringing it up.
sayana
The issue is not the broker you're dealing with, it's the fact that you're buying a NOO property. The typical response you will get is "we need 20% down".
Lenders don't want to take all the risk and give you all the rewards. It's as simple as that.
If you are purchasing something as your primary residence, that 95% financing more than likely becomes available to you.
regards
Most LTVs are based upon Fico scores, if you have a good score then there are a few NOO 100% programs out there that can be used.
Bob H.
Thanks for the responses.
I have a Fico score of 752. It could go higher if I get a mortage or a charge card.
We will move into this house as our primary residence.
With these facts, you feel I could easily find a LTV95% ???
with thost fico scores and it being owner oc you can easily get a 95% ltv and 100% if you wanted. when you have a fico score over 720 and you're going to live in the property you have many, many loans to choose from.
Ok then, what's a good solid method to finding LIBOR LTV%95-100 lenders that will meet my needs. Mortgage brokers?
Any ideas will be greatly appreciated.
iaustin,
Have you looked at the lenders on this site. I did a search for Michigan and it shows various programs, including 100% LTV. Take a look
Thanks for the tip.
I checked the site lender and found a couple if low intrest 1.2%% loans, Bridge Capital, Loan Source etc
Any suggestions on checking the credibility of a lenders? I know I can check the local Chamber or the BBB but any other ideas?
Thank You
iaustin[ Edited by iaustin on Date 06/15/2004 ]
Try Dun and Bradstreet. There is a small fee for reports, but worth it. They have info on Legal actions etc. If the company does not have a duns number, that may be a BIG red flag.
Something interesting just came up at a lender meeting.
They must run a financial check credit, salary, liability etc at the beginning of construction of a new home.
A potential lender explained that a second financial report must be performed just after construction on a new house is completed? to now qualify fo a new mortgage.
Is there a way around this? And why is a second check necessary?
To iaustin - You've got a lot of questions about the mortgage process. What you need to do is find a good mortgage broker who will take the time to educate you to the process.
Last things first - evidently you're looking to have a home built and you need to finance the construction part? No problem - there's what's called a construction-perm loan. It's a single, one-closing loan. During the construction phase, the builder gets their money piecemeal and only interest is paid during the phase. Sometimes, the builder will even pick up these simple interest payments. After the home is complete, a final inspection is made by the local government and a certificate of occupancy is issued. At that point, your loan now becomes a standard mortgage - whether fixed, an ARM, interest only..... whatever the lender offers and whatever you choose.
As to your first question, LIBOR ARMS are all over the place - 1 month LIBOR ARMS, 6 month LIBOR ARMS, interest only LIBOR ARMS, etc, etc etc. 20% down is not a necessity.
Basic questions that you need to ask yourself are 1) What kind of payment are you comfortable with? 2) How much down can you put down if you have to? 3) How long do you plan to stay in the house? From there, the number of loan choices can get narrowed down.
Hope this helps