All Forum Posts by: Corey Blane

Hello BP.

I'm looking for some advice and possibly an investor. 

As you can see in my profile I'm a lender. I've got a client who reached out to me through one of my Facebook ads. He's looking to buy a different home and sell, or rent, his existing. The problem is he doesn't qualify for financing because his mid FICO score is 504.

He and his wife are looking to downsize. They bought the home in 2009 for $150,000 and they owe about $125,000. The home is located in South St Paul, Minnesota.

My question; is there an investor willing to pay cash for his current property so he can get the equity from it and also finance a new purchase for him? Or possibly find a renter for his current place and do a 2 year balloon on a new property? He'd then refinance with me once he gets his credit repaired. From what he's telling me he makes good money (not self employed) but he and his wife went through a rough period where she lost her job. She's now fully employed again.

He seems very motivated to get out of his current situation. 

I'm not sure this is the right forum to post this so if not let me know. 

Best,

Corey

Hi @Syed-Shawn Azam

Although I don't live in the Sacramento area I've funded over half of my $1.5B+ in mortgage loans in San Francisco and surrounding areas. I have several Wealth Advisor's who live in San Francisco that refer me business. 

If you want to discuss financing or if I can answer any questions about FHA deals please let me know.

Good luck!

Hi @Benjamin Andress

Welcome to BP! 

Just wanted to point out that you can buy a single family, duplex, town-home or condo up to $307,900 in the 11 county Twin Cities metro area with a $1,000 down payment. You'll need a credit score of 640+ and annual income less than $86,600 for a 1-2 person household or $99,500 for a household of 3+ people.  You can be a first time home buyer or repeat home buyer as long as you plan to live in the property as your primary residence. 

As for the duplex you mentioned; I was having a hard time following the scenario. You mentioned in the first paragraph that you would live in the duplex for about 5 years but in the next paragraph you said you'd be renting both sides. So I was a little confused as to how you plan to rent both sides of a duplex if you're plan is to live in one side for 5 years? 

My apologies ahead of time if I've misunderstood the question. 

As for personal preferences; my advice is to ignore your personal preferences. There are hundreds of thousands of people who live in apartments that don't mind having someone living above them. Unless the tenant is absolutely unbearable you'll be able to find a renter if the unit is priced right.

@Manish Shah 

As @Wayne Brooks you should look for a lender that will finance a "non warrantable condo".

@Lisa Renee

If you could provide a few more details about your situation I might be able to help. 

Do you currently own a home you live in now, or are you renting?

@Manish Shah

That's a tough position to be in. 

Unless you're looking for a lender that isn't going to sell the loan to Fannie Mae then finding another lender likely won't solve the issue.

In my opinion condos are the worst real estate investment to make (for most individual investors) simply because something as small as a defect in the construction can cause a lawsuit and prevent anyone from buying houses in the development for years to come.

My personal situation is a classic example. I bought a condo thinking I'd sell or rent it after living here for 2-3 years. Unfortunately during that time our association filed lawsuit against the developer and now lenders won't finance in my building which prevents a new buyer from securing financing to purchase my unit. During that time our development has also reached rental capacity so I can't rent the unit either. I'm essentially stuck here until the lawsuit is resolved.

As for a solution; is it too late to back out of purchasing the condo?

@Luke Carl

If you refinance in both your names the lender will take all debt and income into consideration when determining if you qualify. 

If you refinance with just your name the lender will only use your debts and your income to qualify.

So it really depends on how much debt your wife might have and if she has income to support those debts.

@Kerry W.

She is required to pay off the full bid of $41,000 plus fees by the end of the redemption period. 

I think what others have mentioned though is that if she's entitled to the $35,000 surplus she'll only have to come up with another $6,000 plus fees to redeem the property because she should be getting a check for $35,000.

It's probably best you talk to an attorney to determine if she's entitled to the $35,000.