Note For Sale, Help Setting The Interest Rate
I am creating a new 1st mortgage for a property I am buying. I need some suggestions as to interest rates that work for a buyer. If you are a buyer I will listen more than if you are someone just suggesting what they heard will work.
70% LTV
710 or more FICO
10% down payment (seller 2nd for 20%, no payments).
NOO, new consturction
Condo/loft - very up market
The deal is better than the above but that should provide enough to discuss the rates that someone who really want to see. I can make the note interest only, amort, a balloon, etc.
Suggestions?
[addsig]
If they have that kind of FICO and 10% down why do a note?
Should be easy to get them a loan and get paid in full.
My mistake. The buyer has to go 'stated income'. The project is mixed use (commercial, residential, retial) like you find in larger city center. Multiple buildings. Hence some lenders do not want to do the loan.
So, coming back to the question...
What rate of interest would get the note sold?
Call a mortgage broker and let him suggest how to structure the www.note.They do this dailey.
Stated income mixed use property 10% down with a 20% sellers second.
Interbay will do that. http://www.interbayfunding.com
Thanks for the link to InterBay. They sound like they are spot on the mark.
Anyone else have suggestions? I still have not heard any suggest a number.
You could easily get someone with that kind of score a first mtg for 80% to 90% and hold back the 2nd. Call a broker with real estate investing background. You can even use the 2nd as a down payment. call me I'll help you set this up. LORI
I am a broker here in Pennsylvania and have dealt with Interbay. They are very easy to work with and their specialty is is stated income. A rate on the type of deal you are talking about ranges from 6.99% to 8% I believe. They do close fast, usually within 30 days and it is best to use an appraiser that is recommended by them. Hope this helps.
Jason Sardi
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