Financing and Credit

I've been looking into using a hard money lender starting out in order to purchase a property. I am concerned if using a hard money lender would be a good option and after aquiring the property then refinancing it through a conventional loan. I've been talking to banks and mortgage brokers and they seem skeptical not due to bad credit but not enough lines of credit. I'm kind of stuck here and I would really be dissappointed to miss this deal due to someone saying no, you don't qualify. I'm really trying to "think outside the box" here and looking for some advice.

Hello All!

Here is another huge reason to use seller or Private lenders funding!

Lenders Torpedo Home Sales
Real Estate Economy Watch - Steve Cook

While the Federal government will be paying out nearly $17 billion in tax credits over the next five months to stimulate home buying, the nation's system of mortgage financing is undermining their ability to get financing.

My bro-in-law is willing to lend me money, to do deals with. BUT he said if it is going to take a while to get a deal done, then he would rather use it to pay down his mortgage. He is willing to hold money for me but I have to make it worth his while: this is what he proposed, He would charge me 3% interest just to hold it. So on 50k it would be 125 a month just to keep it available to me. What do you DGers think of this? I guess I should get a deal done so I'm not paying to let it sit.

Cathy

Hey DG Family,

So before you see this post and think...haven't we seen this already? Know that I've done my homework! I have searched this site and called all the related posts and still having difficulty tracking down what I need.

I have a house under contract. Yes, I'm open to finding a buyer. But I also need a back up hard money lender ----as I may keep it and rehab it myself.
It is a great project!

I have found a 14 unit appt. Complex that is bank owned. They have it listed at
$350,000 or best offer, they have had it on their hands for a while, the appraisal came in
at $625,000. Will the bank loan on the property that it owns? How do I get them to do it?
I have no money to put down and I don't have very good credit, but the property
is cashflowing right now. At half capacity it could still cover the mortgage.

My question is will they loan on it and how do I convince them to if not, and if they will can I take money out at closing?

I have found a 14 unit appt. Complex that is bank owned. They have it listed at
$350,000 or best offer, they have had it on their hands for a while, the appraisal came in
at $625,000. Will the bank loan on the property that it owns? How do I get them to do it?
I have no money to put down and I don't have very good credit, but the property
is cashflowing right now. At half capacity it could still cover the mortgage.

My question is will they loan on it and how do I convince them to if not, and if they will can I take money out at closing?

Amortization means that your monthly payment on your mortgage pays off both part of the interest accumulated on the loan and part of the principal balance of the loan. In the beginning,almost all of your monthly payment goes toward paying the interest accumulated on your loan. A little bit of it goes toward the principal. As less and less principal remains on the loan, less and less interest accumulates. Therefore, more and more of your monthly payment goes to principal payments. Finally, the last monthly payment pays off the remaining principal, and the debt is entirely paid.

If you are searching for a owner finance and the sale price is far above the FMV price. ie. asking price 20K FMV $8500, what do you offer and how do you figure it out?

Please advise. I looks like it has been on the market for approx 146 days.

WASHINGTON – President Barack Obama signed into law a $24 billion economic stimulus bill providing tax incentives to prospective homebuyers and extending unemployment benefits to the longtime jobless who have been left behind as the economy veers toward recovery.

The bill-signing at the White House Friday came a day after the House, displaying rare bipartisan agreement over the seriousness of the jobless situation, voted 403-12 for the measure. The Senate approved it unanimously on Wednesday.