Thread: Credit for Good Credit

And by the way The 790 credit score is actually very good which would help an individual to get the best loan programs at very cheap rates.

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<a href="http://financemagician.blogspot.com">Finance magic</a>

Finance Magic

Originally Posted by dorian.g

And by the way The 790 credit score is actually very good which would help an individual to get the best loan programs at very cheap rates.

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<a href="financemagician.blogspot.com">Finance magic</a>

Unfortunately the credit scores are not translating into getting the type of loan I want (revolving line of credit for acquisition and bridge of houses to fix/flip) All the banks in my area have dumped programs designed to facilitate this sort of business. It is very frustrating because even though two of my properties are paid off and could be used as collateral, if the banks don't have the program in place, your out of luck. This is all part of the fallout related to the banking crisis.

Dick

You couldn't do a cash out refi or HELOC to get access to the equity in these two homes?

Originally Posted by Magic69

You couldn't do a cash out refi or HELOC to get access to the equity in these two homes?

You'll have to explain more what you mean by 'cash out'.
As I understand it, the HELOC is designed for homeowners. These buildings are multi units. Currently, I live in one of the apartments. It is a 6 unit. Still, the banks don't look at this situation like they would if I lived/owned a separate dwelling.

It's pretty frustrating. One building has a market value of around 400k. The other around 200k. There is good cash flow coming from both of them what with 100% occupancy and they are paid for. What's a guy to do? How is the economy going to grow if the banks keep clinging to their money?

I'm all ears if someone has an idea of how to approach the lending institutions.

Dick

Another option is to look for "hard money", which will usually go to 60% LTV and most people use that type of financing for short-term deals only. Try Mortgage Forums for Brokers and Loan Officers and search for hard money.

Originally Posted by Magic69

Another option is to look for "hard money", which will usually go to 60% LTV and most people use that type of financing for short-term deals only. Try Mortgage Forums for Brokers and Loan Officers and search for hard money.

Short term deals for sure. From what I gather hard money loans come with interest rates beginning at around 12% and are not uncommon at between 19 to 21%. Then there is the points - between 4 and upwards of 10 for commercial hard money loans. Yikes! Man, you sure wouldn't want to get stuck with a property for over 120 days at those rates! I'm too old to sweat bullets anymore. I may simply step back, chill, and see if some of these banks take a laxative whereby they re-introduce bridge loans with revolving lines of credit at doable interest rates.

Dick

Yeah that is certainly the case... hard money = EXPENSIVE money.

Anyway you could try Tonya, an Account Exec for Wiseman Capital - they do bridge loans still.

Tonya N. Jefferson
Account Executive
Wiseman Capital Group
tjefferson@wisemancapitalgroup.com
Direct Lender, Conventional, SBA 504, Owner Occupied, Multi-Use, Special Use Properties, Nationwide

Originally Posted by Magic69

Yeah that is certainly the case... hard money = EXPENSIVE money.

Anyway you could try Tonya, an Account Exec for Wiseman Capital - they do bridge loans still.

Thank you. I just got a call this morning from the loan officer who is processing an application that I made several months ago. This thing has been dragging on and I haven't been giving it much hope. She asked me a series of what I thought were pretty redundant questions - the sort of questions that I had already submitted answers and material for in the original application. Maybe she was looking to see if there might be some contradictions between what I originally put down and now...I have no clue. Anyway, all of a sudden she blurted out something like 'this all looks very very good'. So I dunno what that means because, like a knucklehead, I didn't have the wits about me to manufacture a follow up question like: 'Great, when will you be releasing the money'? or, 'when should I hear back from you with an answer?'. I guess I'll call her in a couple of days and see whats up.
Dick

Originally Posted by eric

Why are you worried if your credit score is good enough?

Well, I believe a thesis could be written about what investors are going through trying to chase after money re: Buy/Fix/Flip. Banks in my area have all dropped their programs. Only the fit (those who can cash out a deal) are going to survive in this environment. Here is a link to one of many articles that circle this issue: 15 Signs The U.S. Housing Market Is Headed For Complete And Total Collapse

In any event here is an update. I was approved for a line of credit. I am about ready to close on my first house. From start to finish working with this particular lender - it took 4 months to get approved. And that is during a period where my FICO score jumped to 809.

I have changed my goals. My plan now is to keep the properties and rent them out for 5 years.