All Forum Posts by: Esther Kamga

If you have a 30 day late on your mortgage, it will take some time for that to clear up a bit. Some lenders won't touch you for a year even. If it becomes a 90 day, I think you'll be stuck.

But here's the thing.  If you're late on your mortgage, why do you want to invest in new construction for a rental? You don't have the money to even consider something like that right now.  If you can't pay your mortgage payments then you must not have anything in savings. And nobody is going to lend on a new construction loan to someone thats never done it before and doesn't have at least 20 to 25% to put down. 

Once you get your new job, fix your mortgage issue and then work on saving some money. As an investor, your credit is  absolutely the most important tool you have.  You can't let your mortgage payments be late no matter what it takes.  If you get dinged with being 90 days late, you might not be able to invest at all.

Quote from @Esther Kamga:

Quote from @Jay Hinrichs:

Quote from @Bryant Brislin:

Land loans are the riskiest type of loan for a lender to give, so they are rare to find.  There are more construction loans available, then loans to purchase the land.  But you can only get a construction loan once it is permit-ready to break ground, etc.  From how you describe your situation, I don't think you'd qualify for the construction loan, they are very conservative on their underwriting.  

based on your description of your current financial affairs I would say you have ZERO chance of pulling off a construction loan . I would be focused on saving your house and your credit..

Hi Jay - thank you for your response. 

If I am able to get my mortgage decrease between $1500 - $1700, how many payment do you think I’ll need to make before I’m able to get a construction loan? My mortgage is currently $2500, not sure the payment will drop within those numbers even if my spouse being a Active duty.

Does getting my loan current mean I have to pay the entire amount owed. I’ve been on delinquent for about 1yr and a half. Does that mean I pay the entire amount I’m delinquent on? 

I haven’t seen much decrease in my credit. I check through my bank. Are the number coming through my bank accurate? I was thought there are 2 different credit. 

Any advice is greatly appreciated! 

I am not a credit expert.. just know how tough construction loans are .. so with zero experience and missed mortgage payments I suspect u will not find a lender that will do a loan for you.  Land/construction are tough even with perfect credit.. what those lenders look for is experience and a significant amount of cash into the project and great credit.

I truly wish I had better news, but I don't know how you could do anything now until you have better credit for awhile.  Even once you get the mortgage current, your credit may still show the delinquent payments, so it could take some time before your credit seasons to a better score. I don't know what it means as far as your city bids the land banks. 

Quote from @Bryant Brislin:

Land loans are the riskiest type of loan for a lender to give, so they are rare to find.  There are more construction loans available, then loans to purchase the land.  But you can only get a construction loan once it is permit-ready to break ground, etc.  From how you describe your situation, I don't think you'd qualify for the construction loan, they are very conservative on their underwriting.  

based on your description of your current financial affairs I would say you have ZERO chance of pulling off a construction loan . I would be focused on saving your house and your credit..

Land loans are the riskiest type of loan for a lender to give, so they are rare to find.  There are more construction loans available, then loans to purchase the land.  But you can only get a construction loan once it is permit-ready to break ground, etc.  From how you describe your situation, I don't think you'd qualify for the construction loan, they are very conservative on their underwriting.  

Quote from @Esther Kamga:

Quote from @Deborah Pyburn:

Hi Esther! My in-laws live in Hope Mills and college bestie lived down the street from Bragg. There’s nothing wrong with your plan even with the delinquencies, it may just take you a little longer than you would like. The land purchase you could acquire out of pocket. Look into “land banks” and tax deed auctions for the areas you’re considering. You’ll spend more on surveys, permits, and building which is where you’ll need the financing or to pay directly over time. I’d be happy to discuss more with you whenever you’d like. 

Hi Deborah! Just read your suggestion and it sounds interesting. Your suggestion if I understand correctly after googling the terms, is too look into county owned properties or lots? Tax Deed auctions look like the homes that belong to the the county. How much are the bids for those types of home? As for the land banks I can see the the bid amount on the county website. But I think im worried about whether or not I can get my deposit money back if someone else bids more than I have.

I know a little about permit expedition, if that can help me save money. 

My Main question is - How can I acquire land out of pocket. 

Right now our case is under review with the underwriters and we’re waiting to hear back on how much we can pay monthly to help us get back on track. 

I haven’t researched the local NC land banks but I know the ones in GA are more of an “application” process. They don’t have a multiple bid system. They want to know your plans on how to develop and revitalize the property. Sometimes they’ll ask for contractor info and proposed construction plans. You buy the dirt outright and develop on your own dime (direct financing, construction loans, HML, etc).  Vacant lots can go for as little as $5000 - $7500 and are usually between other houses so you at least know utilities should be on or near your site. 

And to be clear tax deeds is COMPLETELY different than land banks. Land banks, the city actually owns the property and can transfer it to you after the application process I mentioned above. Direct dealing with the Landbank Authority for that jurisdiction. Anything related to tax deeds deals with paying back taxes, potentially involves bidding against other investors, and had some delays in acquiring clear title to the property. 

Focus on bringing your current debt current. Being delinquent on your mortgage tells lenders you can't handle the debt you have now.

Next, get an income and build savings. Buying land and building anything can be a great thing, but it is expensive and you aren't going to get 100% financing. This approach is probably your most expensive path.

Consider buying existing homes and possibly renovating them if you want to be a landlord. Your investment can be a lot less and you will be much closer to rental income.

Hi Esther! My in-laws live in Hope Mills and college bestie lived down the street from Bragg. There’s nothing wrong with your plan even with the delinquencies, it may just take you a little longer than you would like. The land purchase you could acquire out of pocket. Look into “land banks” and tax deed auctions for the areas you’re considering. You’ll spend more on surveys, permits, and building which is where you’ll need the financing or to pay directly over time. I’d be happy to discuss more with you whenever you’d like.