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I was told the only loan you can be approves for is an FHA loan if you do the credit counseling - I don't think I'm willing to take the chance though. I'll have to figure something else out!
Can someone recommend a good mortgage broker and private investor for such a loan. Friend who needs this loan currently lives in NJ, but is looking to buy a home in NC. Thanks.
Quote:
Originally Posted by learningCA
First of all, any loan secured by real estate requires a valid real estate purchase contract, an accepted offer.
A hard money loan is a loan that does not finance the purchase of real estate but it uses real estate as a collateral. A cash out mortgage refinancing is an example of a hard money loan. It carries a higher level of risk thus a higher interest rate.
"Many hard money mortgages are made by private investors, generally in their local areas. Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the biggest loan one can expect would be between 65% and 70% of the property value. That is, if the property is worth $100,000, the lender would advance $65,000–70,000 against it. This low LTV (loan to value) provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property." For more info. click on the link below. http://en.wikipedia.org/wiki/Hard_money_loan
A private investor loan does not follow the usual mortgage loan qualifying criteria.
As noted above, the private investor is rewarded for the higher risk by a higher interest rate.
The low LTV and your friend's high credit score should enable him/her to obtain a 10k loan even without employment and income verification.
To get in touch with private investors in your area contact mortgage brokers and speak to the owners, they are usually more astute about such products than regular loan officers.
I have this debt that want to get rolled into one payment so that I can actually save - these credit card companies are digusting simply raising your intrerest rates because they feel like it - awful!
If you need to get out from under this Chelsa, negotiate directly with the Credit card companies. They may require you to close the card, but at this point does it really matter? Credit Card companies are taking a serious beating on loan defaults right now, so they are more willing to help you out then in years past. There may options to fix the payments in and ammortorize them over a certain period of time, every company is different.
Kathleen is 100% correct, a credit counseling service will serve the purpose of getting you out from under, but it will destroy your credit for the foreseeable future.
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Can someone recommend a good mortgage broker and private investor for such a loan. Friend who needs this loan currently lives in NJ, but is looking to buy a home in NC. Thanks.
In NJ, call Acre Mortgage at 888-222-4313 and ask for either Jeff DePalma or David Zumbrunn. If they don't have the answer then they will know who will.
Last edited by JLay36; 02-03-2010 at 02:22 PM..
Reason: forgot to add the state..
Thanks JLay. I checked out the Acre Mortgage website and I did see that they have No Income Verification (NIV) loans, but the minimum loan amount is for $75,00 whereas we only need a loan of up to $15K. This would be for a home purchase and we would use the home for collateral. Perhaps another option would be to put down less cash so we can get the $75K loan. We were planning on putting a $125K cash downpayment for a home in the price range of $125K - $140K and getting a loan to finance the balance of up to
$15K. We could get a $150 K house by putting down 50% and financing the other 50%. We would therefore have a cash reserve of $50K plus the $8000 first time home buyer's tax credit. Would we be able to get the NIV loan of $75K using the equity we have in the house of $75K and cash reserves of $58K? Ofcourse, our interest rate on this loan would be higher since LTV would be higher? Trying to come up with a strategy here to make this home purchase work. Thanks.
Quote:
Originally Posted by JLay36
In NJ, call Acre Mortgage at 888-222-4313 and ask for either Jeff DePalma or David Zumbrunn. If they don't have the answer then they will know who will.
$75k with a $58k cash reserve puts you in a good spot and when you're talking LTV the difference between 10% and 50% is not even worth thinking about. I don't write NIV loans myself, and haven't for quite some time, so I would defer the subject matter experts on criteria based questions.
If you really want to plan this well, call Jeff. I've never met anyone that can navigate mortgage messes like that guy.
JLay, I just shot over an e-mail to Acre Mortgage to inquire about their NIV/ No Doc loan program. I was informed they only do NIV / No Doc loans of 75K and up. I'm still waiting for an answer to see if we can qualify given our cash reserves.
Last edited by CarolinaOnMyMind; 02-09-2010 at 03:38 PM..
The hard money loans have all but disappeared , about a year ago, I know , the hard way. A lot of the Mortgage Brokers have gone the same way.....to the Caymans waiting it out !
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