Need A Pennsylvania Hard Money Source For Owner-Occupied Home

[Drew Weidner]

Hello,

 I need some help figuring out how to put a deal together.

Here are the details:

Home Value - $325,000

Selling Price - $285,000

Owner has an existing first mortgage of $190,000 that needs to be cleared. He is willing to hold a 2nd for the balance. I am self-employed for less than two years but have great credit (730+ FICO). My tax returns don'w show income to support a  $285,000 mortgage, but I can afford to pay it. I have about $10,000 - $15,000 to put down including closing costs. Every lender I talk to says I need to come up with about 10%, plus closing costs, plus 6 months reserves to put a deal together, that I can't rely on the equity in the property.

The house is a great deal and I'm only looking for about 60% LTV. It seems like this should be fairly easy to put together, but I keep running into road blocks.

Any advice?

Thanks!

[Ryan Blake]

@Drew Weidner You won't be able to get true hard money for a owner occupied home. There are additional requirements and regulations put on my the federal government that prevent this. Also, since HML are higher risk, they will want first lien position which is probably not possible on this deal. I think you will need to look to a local bank and start dialogues with the loan officers. You need a bank that will keep the loan in house and even then, you may not meet RMLO qualifications that are required by the feds (this is the test that lenders are required to do now to proved that the lender has the ability to pay back the loan).