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The bank accepted!! Now need to find the money.

December 20th, 2013 at 02:47 pm

Hi all,

The BANK ACCEPTED at $297,500. House should firesale at $380k and sell thru a realtor at $410k realistically.

Now I have to FIND THE MONEY.

$297500 is 65% of $419k. Most hard money lenders want 65% loan to value.

Will start making calls next week..It would be awesome if I could get 6-6.5% but I can do up to 8%. if I get 6.5% I will try to keep the loan long term and pay off early.If I get over that interest rate I have to refinance and have to wait 1.5-2 years to refinance but it will be an FHA loan.

Why so willing to take higher rates long term??. I would have to go to an FHA loan on a refinance anyway and wiht FHA mortgage premium I am over what a 7% payment would be anyway.

Prayers for creative financing solutions to appear.

Smile

7 Responses to “The bank accepted!! Now need to find the money.”

  1. Xtreme Thunder Says:

    I may have missed it, but why couldn't you refinance out of your hard money loan to a conventional mortgage? There are much better options than FHA. Between their Up Front Mortgage Insurance, their Monthly Mortgage Insurance rates (now paid the entire life of the loan from what I gather), I'd look for another option. I know here in NY, there are many other options that are much cheaper to close with 5-10% down that include a sub $2K Single-Pay-At-Close Mortgage Insurance option with total closing costs easily half of what FHA wants, even with sub 4.5 % interest rates on a 30yr note considered conventional.

  2. Rachael777 Says:

    I have a past foreclosure w my ex so would need to wait 7 years (from that date) to refinance from the hard money loan to a conventional (FHA is only 1 year).. maybe conventional will work out but not sure I can get a hard money loan that long and if I do (even at 6%) will just keep it and try to pay off as much as I can. thanks for the interest. Really excited over here. I WOULD be very interested in your thoughts or referrals though for loans for someone w a 700 score, enough income, potentially 65% loan to value and a past foreclosure less than a year old who loan in Illinois. THANKS!

  3. TashaC. Says:

    Can you pull any equity out of the rental properties?

  4. Petunia 100 Says:

    Great news, Rachael, congrats. Smile

  5. Rachael777 Says:

    thanks for the idea Tasha. Although I have equity in the rental properties though I do not have the deeds yet.. however w the terms of the deal I can pull out one deed every 16 months until the 5 year contract is over. My first is September. so at that time I will have a fully paid off deed (which will have equity I can use) but from now til then nothing.. same w the 3 units. I will start calling and continueing to think creatively but keep the ideas coming. Thanks. With a contract sale the deed is in the sellers name until fully paid off or by agreement.

  6. SicilyYoder Says:

    Congrats!

  7. TashaC. Says:

    Sell a car!

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