yep, traditional lenders will be a bear to work with & kill a lot of deals. You can use private money, or have buyer take it subject to your loan, or carry the financing then immediately sell the note. Many possibilites just lots of hoops to jump thru.
It seems like selling the property on an owner financed note and then selling the note at closing would be a viable option as long as the note buyer had no seasoning requirements....
You will get a better price for the note the longer it is seasoned. However, there also will be note-buyers interested in the note if the LTV is strong.
Eric5:
I assume your .7 contemplates a conv. loan. Is that correct? If so, is the reciprocal .3 linked directly to PMI?
ie. the PMI may cover 30% of the loss?
Thanks
Gene Texas
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no, its not illegal . But it is difficult because of traditional lenders regulations for seasoning.
no, its not illegal . But it is difficult because of traditional lenders regulations for seasoning.
yep, traditional lenders will be a bear to work with & kill a lot of deals. You can use private money, or have buyer take it subject to your loan, or carry the financing then immediately sell the note. Many possibilites just lots of hoops to jump thru.
It seems like selling the property on an owner financed note and then selling the note at closing would be a viable option as long as the note buyer had no seasoning requirements....
You will get a better price for the note the longer it is seasoned. However, there also will be note-buyers interested in the note if the LTV is strong.
Try to find out the BPO or take a best guess and then offer 82%. Otherwise figure the value minus repairs multiplied by .7
Is that ARV minus repairs X .7??
yep
yep
Eric5:
I assume your .7 contemplates a conv. loan. Is that correct? If so, is the reciprocal .3 linked directly to PMI?
ie. the PMI may cover 30% of the loss?
Thanks
Gene Texas
Thanks-
If a loan carries PMI, how should that affect my offer?
I believe the .7 factor has nothing to do with type of financing ,or PMI.
The .7 (or.65 in my case) is simply used in the formula to assure there is profit left over after the purchase and rehab.
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