Financing and Credit

We closed on a no season refinanced deal today. It took longer than what I hoped it would take but the deal is closed now.

As many of you know we bought a house in Indiana for 15k back in October. We had new carpet put in new doors and windows, new furnace, and bathroom remodeled plus paint though out the house and some electrical work done. All the work done for about 20k. We had the house appraised for 61k in December. The repair work took a little longer but it was done right.

Now we have a check coming to us for 45k minus the bank fees for the loan. UP DATE as of 02/12/11 the check is in our account.

I would like to thank Dean and Matt Larson for telling us about small town banks that will do a no season loan. We learned about this by watching the 2010 Edge DVDs.

How exactly is this done? Is it as easy as finding a motivated seller and negotiate taking over their payments? Then I suppose owner finance the property to a buyer..

Just a little confused...Scared

And what are good signs to look for these type of properties?

I finished my rehab and have cash flow tenant in place since November, when I tried to refinance out of my hard money loan. Everyone that I have approached about refinancing tells me to wait 6 months for seasoning, meanwhile I have been laid off and unemployment only pays some of my bills. I am not in trouble because I saw it coming and arranged my finances to suit. However no one will touch my deal because I do not have a J..O...B. Does anyone have any suggestions.

Hello - I am just starting in the REI and have found a property in Austin, TX (bank foreclosure -Fannie Mae) - property tax roll is at 161 and I'm purchasing for 117.5 - property appraised at 157.5 - used hard money w/a private investor for down. I have a prospective tenant for a year and want to sell property after the year. I would like to refinance property after closing for 137.5 - (credit is poor)- where do I start looking for lenders to be able to do this? Any help would be greatly appreciated.

thanks in advance - Oscar

As a multi-state investor always looking to see if I can include the crazy state (California) as a niche market, the current economic situation always holds me back. The Los Angeles Times noted last week the California jobless rate climbed to 12.5% in December (up from 12.4%) and is among the nations highest. To add salt to the already deepening wound, economist expect more job cuts as Gov. Jerry Brown tries to close our $28 billion budget deficit. Even gloomier yet is the prediction by the Business Forecasting Center at the University of Pacific, stating our unemployment rate will stay above 10 percent for three more years.

This is an article that I found somewhere (???) that I kept to show my people so they understand the law. I thought I would post it here for you guys to read because there is a whole lot of slop going on out there and you aren't being told the truth. Here is the truth:

Cash back deals are stitched into the very fabric of the U.S. economy. Manufacturers promote their products with cash rebates. Credit card companies offer cash-back on purchases. Even banks dangle cash-back deals to attract new customers. Now, home buyers and con artists are jumping on the cash-back bandwagon, and plenty of our own people—real estate professionals—are tripping over themselves to cater to them.

If you run across a hard money lender and a bank that both check credit scores but are willing to do loans based on the appraised value of a property. What should your credit report look like? I was talking to another investor and he told me they look for specific things in your credit report, not just good credit scores.

If so what should I do with my credit in order for a bank and a hard money lender to take me serious. I want to do the cash out refinance process like Rina and Matt Larson. I have called over 30 banks. Found one that is willing to do a 80% loan ARV with no seasoning. They just require you have a good credit score. I also have a hard money lender that will do a 65% loan based on the ARV.

Here's what my partners and I offer. If you refer someone to us who meet the requirements below, as soon as they close their first deal with us (usually within 10-14 days), we will send you a check for $500! You can refer as many people as you want to us... there's no limit!

We are a Real Estate Advisory company who provide 100% financing for acquisition and renovation of your property (That's not a typo... 100% Financing). Based on certain credit criteria, our clients may not even be required to put down earnest money. And, the deals we put together usually cash flow between $300 - $800 per month per property.

Here are the requirements the person you refer to us need to meet to get involved:

- Minimum 680 credit score.
- DTI (Debt to Income) must be 45% or less

I am in need of transitional funds for 19 days does anyone have any lenders they are working with that will stretch out for that many days. I have to close on this deal Feb 2nd and my buyer is using an FHA loan and the seller doesnot wish to wait the additional 19 days. Any help would be fantastic.
Thanks Donna

The FHA lowers credit scores! This is great news, and may help some investors get their own home when they previously were told they could not get approved! Here again are some general guidelines:

580 - 599: max financing - 95%
500 - 579: max financing - 90%

All the down payment monies, must come from "your own" funds with a max of 3% seller assist.

If computer model "approves" loan - 31/43 max ratio's
If computer model "refers" loan - 31/36 max ratio's + 2 months reserves will be needed to fully ensure these loans are going to be approved.

Hope this information helps.