Financing To New Value Question
I have 2 properties that i was told i had approvals on to refinance to there current value. I was suppose to close on one today. I spoke to my mortgage person on Friday and she said all the lender needed was reciepts proving the work had been done so i sent all my reciepts to her Monday. I tried reaching her all day Tuesday to make sure she had everything and could not get a return call or email so I called the Processor, to no avail he is no longer with the company and according to the paperwork in the file the loans indeed were approved with the stipulation I supply 12 months cancaled checks. I have only owned the property a couple of months so that will be hard to do.
They were un able to get it done with me on the loan because my mid score is only at a 667 so we through my wife on it with a 685 mid score wich supposedly flew right through. (scores are low do to Credit limits are pretty Tight other wise credit is perfect)
My question is : should it be this difficult? We are stated income and doing a 90% cash out refi on one and just refinancing what is owed on the 2nd one. The 90% cash out is on the After repaired value based on a new appraisal and is very conservative.
I have 2 other properties that are also supose to close this week through sales. I am concerned because i put in to refi these also as a back up incase they fall through and have the same approval and stips.
Any suggestions as to how long it should take to get all this done? And how long do i wait without a phone call before i start having other companies pull my Credit? Our scores are hovering real close to that 680 and am affraid if i switch now and my wife drops to a 679 with other credit pulls we are screwed.
Any Help would be greatly appreciated.
Ron
Yes i will be re investing to other properties.
If you’re going to hold it for awhile, you may also want to consider a rehab loan. There are some that will cover 100% of the purchase, 100% of the rehab, and 100% of closing costs. And when the rehab is done, it automatically rolls into a permanent loan with no additional closing costs. Then you could put a HELOC on it to pull cash out.
Just something else to consider.
If anyone knows where I can get my hands on a loan that will cover 100% of the purchase, 100% of the rehab, and 100% of closing costs - Please let me know. Interest Only would be great too!
I checked a few lenders from the link above but no luck with the state I live in.
I know - It sounds to good to be true, but the worst that can happen is someone will say NO.
Thanks
Thanks for you input guys. Its great that people in this forum are so willing to help out with helpful feedback.
jimandlacy, do you know the name and contact info of some of these loan packages you speak of. That might be something worth looking into. Are you referring to arms and interest only loans? I was planning on doing an interest only loan.
Do you invest in Newark, NJ as well? Typically a 3 bed apt commands 1100 a single fam house might get more.
Thanks for you input guys. Its great that people in this forum are so willing to help out with helpful feedback.
jimandlacy, do you know the name and contact info of some of these loan packages you speak of. That might be something worth looking into. Are you referring to arms and interest only loans? I was planning on doing an interest only loan.
Do you invest in Newark, NJ as well? Typically a 3 bed apt commands 1100 a single fam house might get more.
Hello all,
Mcole is right about the rehab loans. I did a lot of research trying to find the same thing and came up with a lender out of Florida. The requirements for the loan are as follows:
Min. 720+ FICO score.
Interest rate is Prime + 3.5 interest only
No pre-payment penalty
Will loan up to 90% of After repaired value for Full Doc
or 80% ARV for Stated Income
Appraisal will be required & payment required at time of appraisal
List of repairs by a licensed contractor.
They charge 2% of loan amount for their fee.
They also require you to contribute 5% of loan amount upfront put into an escrow account. Once you finish the repairs the rehab loan automatically converts to a permanant loan & you get the 5% back. No refi required
You get no repair money at closing. It is held in an escrow account. So you have to have your own money to start the repairs.
Once you get some repairs done you can call for an inspection from the lender & if satisfactory they will release a portion of the repair escrow. They charge $100-$200 for each inspection.
Min loan amount of $50,000
Fill out a 4 page loan app for a pre-approval.
Must allow a little longer than 30 days to close
I have a client in the process of doing the first loan with them. We just got a property under contract on 1/11 and just turned in the required paperwork to him on Friday. I am anxious to see how smoothly it turns out. The name of the company is www.yourmortgagedoctor.com. The contact person is Danny Garcia & his # is 813-995-0633.
Hopefully this helps,
Mike
Equity,
Here a link to the HUD fair market rents:
http://www.huduser.org/datasets/fmr.html
I have at least one 5 year interest only and I got that from my regular go-to loan broker. He had a laundry list for NOO no doc interest only loans. The one we chose is underwritten by National City. I got it with the full intention of selling this unit which had a tenant in place after they leave in 18 months.
Jim
Use a skip tracer. I myself can look them up on Merlin Data and find the next of kin or most possible next of kin etc.
Use a good skip tracer..