Fountain Hills, AZ · Member since 2020 · 45 posts · 49 votes
I was talking to a few lenders on a home that was 80k, turnkey for the most part. The lenders weren't able to do the loan even with 20k down because the points they weren't able to make it work. And they didn't even know if it were legal. They didn't give me specifics. I have a question. If I did a loan through someone like lightstream, or a company like that. So a personal loan for 65k, for 7 years at 11%. Is there a way to turn around and refi that to a 30 year, since I would have the title in hand, then pay off that 65k and lower that payment? I know there would be "seasoning" in some cases before I could refi. I wanted to see if anyone has been able to do something on these lines, for smaller properties.
No matter how you finance, you'll need to work out whatever the legal issues are, @Brett Danehey. There may not be a clear title, liens on the property, back taxes...who knows? That's going to be an issue when you try to close and if not sufficiently sorted, you won't be able to refi into a traditional mortgage product.
This may be an unique opportunity, if you're willing to do the the work. Work with a great RE attorney/title company who can help identify the problems and remediate them.
Thanks for the info Jaysen Medhurst. The legal issue the lenders were talking about wasn't the specific property is was more the fair lending on a small value property.