How can I Close????

[Shara Carlton]

I put a bid in for a property and my agent just told me it was accepted. My original plan was to "Hack" it: live in one unit and rent out the other. However, I am not sure if I will have enough money to complete the transaction. I don't have good credit so I am going through a HML, however, my lender found some things on my credit that I need to pay off before I can complete the approval. This is now going to cut into my down payment and closing costs. I'm thinking about paying off my debt and finding a partner to help with the closing and down payment. However, what would I offer to the partner to make them want to joint venture with me?? Should I get someone with better credit to get approved for the loan and I pay the down payment and closing costs?? What kind of incentive would make them want to put their credit on the line?? Maybe I can get an investor to pay the 30k cash to purchase the property, put the property in my name, and I get a loan on the property in order to pay the investor back?????

[Jon Holdman]

Does your HML know you planned on moving in? In the loans the broker I work with makes that's a default condition. That is, you move in, the loan is in default and we will foreclose if you don't get out or pay it off. That's because residential loans (loans for a property you live in) are highly regulated and that's just not the business HMLs are in.

What you're really talking about is a private loan.  Do you know anyone who might be able to loan you $30K?  Problem is, they will want a first position mortgage on the property and that will make finding the second mortgage more difficult.