Financing and Credit

Climbing mortgage rates in 2013 corresponded with declines in home buying, a trend that could to some extent continue in coming months as interest rates adjust to shifts in the Federal Reserve’s monetary stimulus effort.

The average of 30-year fixed-rate mortgage interest rates so far this year compared against new-home sales illustrates that inversely proportional relationship: When interest rates go up, demand from would-be homeowners drops.

Hello,

Have several great rental properties in Tampa area with 40% equity, excellent cashflow, 713 credit score and excellent w_2 income; yet can't find bank to refinance!! Any tips would be appreciated!! Thanks

Hello Everyone,

I wanted to share this article I found with you as it will affect anyone who is buying, fixing and flipping to the retail market. In 2014 it is going to be harder for the retail public to qualify for a loan. There are new rule and regulations to make it safer for the lender and borrower but, in my opinion it will make home sales drop. This means you will need to adjust your holding time cost when purchasing these homes to flip. As investors we need to be educated about all aspects of our business and this in one things we need to be ready for. Make sure for further explanation of the changes and how they could affect your prospective buyers, I would encourage you all to talk to a mortgage specialist or mortgage brokers.

Hi

Does anyone know any Hard Money Lenders that does construction from the ground up?

Thanks

One of the most popular forms of wholesaling real estate for investors involves the use of transaction funding. Wholesaling is the flipping of properties and can involve closings in very short time frames. Simultaneous closings are no longer viable with new financing laws and careful title companies, so purchasing and the sale in a wholesaling situation are frequently closed within minutes or hours of each other. Let’s use and example:

Real estate investors rarely grow their portfolios with all cash out of pocket. Leverage is not a bad thing, and proper use of leverage and other people’s money is a valued tool for real estate investing. This is particularly true and almost always necessary in larger multi-family or commercial rental property purchases.

Not sure if this is the BEST place or not but...

Anyone know what is the best way to "Word" a letter to a perspective lender?... Not sure how best to ask it.

Basically what to use, how to use it, and what NOT to use? etc...

I found a cool article that explains what banks are looking for when calculating DTI and kind of will help you out with your mindset going into a potential deal.
I hope you enjoy.

Most lenders don't want you to take out a loan that will overload your ability to repay.
By John Adams

As you think about applying for a home loan, you need to consider your personal finances. How much you earn versus how much you owe will likely determine how much a lender will allow you to borrow.

While the United States and United Kingdom share similar financing real estate systems there are a few basic differences that cause the States to be different in some fashion than what we’re used to. Not many, but differences do exist.

The similarities typically regard financing real estate where banks issue a mortgage secured by the real estate. A minimum down payment is required here, typically 5.00 percent and while there are 5.00 percent down loans in the United States those programs are reserved for US citizens. For “foreign nationals” as foreign borrowers are called, down payment requirements are typically 30 percent, with a few banks asking for less and still more requiring a down payment of at least 50 percent.

I've heard and read so much from investors recently about how DODD / FRANK has dramatically altered the landscape when it comes to owner or seller financing. So much so, in fact, that investors are flat out turning away from it in any form.

Additionally, there seems to be far & wide reaching, and growing sentiment, that unless an investor has sufficient legal and mortgage broker involvement in the process, it's highly discouraged for ANY investor to offer ANY type of seller or owner financing.