All Forum Posts by: Brent Myotte

For those who have been around long enough, this is reminiscent of World Savings, a true portolio home loan bank that operated in the Southwest. If you are willing to refinance, you can try BofI bank wholesale (through a mortgage broker) for entity vesting at rates that rival conventional lenders underwriting for sale in secondary markets.  Side note, BofI has a competitive pricing matrix, so although they're a portfolio lender they have the technology platform to deliver low rates and flexible loan terms. However, as with any lender that allows you to hold title in the name of an entity, you will be required to sign a personal guarantee for the loan.

That sounds like an unusually low price for 27 units with no vacancies. Is there something else to know about the property?  Does it need renovation? Is it rural or in an urban area? With some added details you can narrow your search to a short list of channels for funding, maybe a particular type of lender.

I would think that most lenders will consider a request for transferring title to an LLC if you agree to provide them with a personal guarantee for the mortgage. The reason conventional lenders don't want title transferred to an entity is because there is no (individual person) 'on the hook' for the loan. However, many lenders allow entity vesting. Check to see if your lender does, and if you provide them with a way to have recourse for the loan through a personal guarantee, then it may fit their lending guidelines. Discuss it with them before taking action that could be counterproductive.

Farakh, you have excellent advice from others here. I worked for banks and after seeing over 1,000 loan applications I can share a couple of thoughts about the credit situation you described. The credit score is relevant only in relation to the specific parameters for the loan you request.

If you are seeking a very low down payment (95-97% LTV) for a conventional long term loan, then the score matters. These types of mortgages are originated according to Fannie/Freddie/Ginnie guidelines that make them eligible for sale in secondary markets. It's a kind of mindless "checklist" way of underwriting loans, and if your score is 1 point below the minimum it's denied and 1 point above is approved.

If you know that you will be selling or refinancing with 3 - 5 years, then a more flexible "Alt" loan through a bank that combines a fixed period that converts to an adjustable rate is more flexible with regard to income and credit.

Credit problems can be explained as a "one time set of circumstances that do not reflect ongoing consumer behavior." Examples are medical issues, job loss, lost business income related to economic changes, and others that you can demonstrate happened at a fixed point in time and are not ongoing.

And others who have commented here are correct, your score was torpedoed because of its recency. It is far outweighed in the scoring algorithm by other positive factors, and it will shoot back up in a short time.

Your lost utility bill, like an unpaid parking ticket that shows up in your credit profile, will not keep you from being approved for a loan. Bank underwriters have these things happen too.

It sounds like this will work for you. Most HMLs will allow the entire down payment to be equity from a cross collateralized property. You can also take a portion of equity from several properties to make the amount needed available. Crossing several properties in this way is a little more complex so you want a lender that is familiar with how to do it. Generally, the recorded instrument that places the lien for the cross is in first position, so other liens will have to be subordinated to it. Also keep in mind that the loan fees and other costs cannot be included in this, so those amounts must be cash brought to close the transaction.

Hi Patsy,  good advice from Nathan. It is common for hard money (asset based) lenders to allow cross collateralization of a property you own to cover down payment for another investment property.  This flexibility is an advantage of hard money lending. The general rule is to allow up to 65% of the equity in the crossed property to be available for this.  Be careful that you or a family member do not live in the property being purchased with this type of financing, as these loans are business-purpose only, exclusively for investment properties.

Hi Jesse, you may want to check with a portfolio lender.  Not hard money or private money, just portfolio bank/lender that doesn't underwrite loans for sale to the secondary market.  BofI wholesale (formerly Bank of Internet) has a great foreign national program and it's underwritten as a 2nd home (by default, since it's foreign national) .  A mortgage broker signed up with BofI should be able to take care of you.  Last year when I was involved in these loans, there was no Visa, no credit score, no social security number required.  What is required is a valid passport.  Amazing how flexible the FN loan program is.  Good luck