It looks like 12% is the rate I will get. No one has beat it.
1. 12%, 4 points, 2 years(that is a verbal,. they are still reviewing, formal offer Monday. Thsi is being house underwritten so may be able to stretch loan to value some which is a BIG plus. see below)
2. 12%, 6 points, 2 years
I also have a business loan application in the works (LLC real estate busienss.. sortof a long shot but if it it works I have NO POINTS and 5-9%) I am getting help on that and will not know for likely a few days or a week
1. proceed with loan #2 to BPO (brokers price opinion).. same with loan #1. I need as little down as possible.
I initially had the loan amount as between $292,500 and $297,500. Problem was I had NO IDEA points or closing costs would be so high (now I know). That is approx 65% of a house value of $450k. I do not feel comfortable coming up with 4-6 points, $10k taxes escrow and potentially $4k closing costs... (see my side bar I have essentially $30k) and my personal and rental escrows are not at full amount yet.
(I am figuring tax escrow because there is no way I can escrow $8-900 a month for it.. so I need to set that cash aside up front)
PLAN. I pulled comps again and have comps at $470= (real comps.. not stretching it). I have asked lender 1 and 2 and to see if they can either go up to 68% of $450k or 65% of $470k. rthat is approximately $305k. I will have news only after the BPOs (realtor comes out and give value of house) this week. If they can do that (increase the loan amount) .. the 4 point person nets out to a cash down of $7500 (points/cost overage), $10k escrow, $1030 (pay insurance a year up front. they require it).. 6 point guy comes down to less than $30k
I have paid for the BPO ($250) for lender #2 and will set that up asap. And call lender #1 Monday for news.
My mentor say the only way he can help me on such short notice is to buy the house himself and lease it back to me (no way!)..and at 13% interest and unknown costs.
I do have my exit plan fairly well cemented.. so I only need the loan for just under a year.
More news Monday (and hopefully 4 points people come through. they are doing a CMA now and if it is strong enough will not need a BPO or appraisal)
I am still in the game.
update on house situation #6