Any mortgage brokers here?

[thefed]

Why, oh why, is it so hard for me to get a loan on an investment property?

I bought it for 12k 1 month ago, it recently appraised for 49k. I put 10k into it, along with 500 man hours of labor.

I'm in OHIO, and having a helluva time getting a HELOC against the home.

My debt-to-income ratio is fine, 45%. credit is okay, 680. I own the house ouright. I only want to take out 75-80% of the value of the home.

BUT, I keep getting turned down for different reasons. The main ones are:

"We cant use the new value of the home til you've owned it 6 months (or 1 year)"

"Your monthly debt is $37 too much for us to approve you"

"We cant do a HELOC in first position. We want to be the second lein holders"

"we can do it, but only to a 50% LTV"



Any ideas? Lenders? Contacts?

Thanks

 

[brewer12345]

Do you have a local (not megabank) bank you have a relationship with?

Otherwise, try Dave Donhoff at http://www.nobullmortgage.com/

I've dealt with him personally and he is a straight shooter that can help you find a lender that will work with you, assuming such exists.

 

[justin]

seems like reasons 1, 2, and 4 are legitimate "excuses" (would make the loan too risky).

Why anyone would turn down a first lien and only want a second lien baffles me.

 

[brewer12345]

Why anyone would turn down a first lien and only want a second lien baffles me.

Because they are idiots reading from a script.

 

[thefed]

seems like reasons 1, 2, and 4 are legitimate "excuses" (would make the loan too risky).

Why anyone would turn down a first lien and only want a second lien baffles me.

Ehh...I disagree. When you want a 40% DTI ratio, and I come in at 39.9.....come on!

50% LTV is just stupid, imho.

And the seasonign issue I understand, BUT if they would acknowledge the work I did, theyd understand WHY it's appraised at a higher value...aka WHY i bought it.

I might get in touch with nobull...thanks brewer

all the local banks are goofy here. nobody is a 'specialist', jsut a teller with a quota

 

[justin]

Ehh...I disagree. When you want a 40% DTI ratio, and I come in at 39.9.....come on!

50% LTV is just stupid, imho.

And the seasonign issue I understand, BUT if they would acknowledge the work I did, theyd understand WHY it's appraised at a higher value...aka WHY i bought it.

I might get in touch with nobull...thanks brewer

all the local banks are goofy here. nobody is a 'specialist', jsut a teller with a quota

I didn't say the banks were being smart. Just that reasons 1, 2, and 4 can affect your risk profile as a borrower. But stating a preference for a 2nd lien over a 1st lien is bad business.

Someone out there should be able to correctly assess how risky the loan is and make you a loan with the appropriate market interest rate.

 

[brewer12345]

One other thought. You could check out www.prosper.com as a source of funds. No personal experience with this one.

 

[youbet]

Someone out there should be able to correctly assess how risky the loan is and make you a loan with the appropriate market interest rate. 

Never ever having had debt other than my long ago paid off mortgage, I know little about this.  Can someone more knowledable comment?  Is thefed requesting a risky loan or a not risky loan?  It seems like if it is non risky and he's willing to pay a profitable interest rate, the loan would be granted.

Whats up? Is it just a matter of uninformed sellers (lenders) not recognizing a good deal for themselves when they see it?

 

[free4now]

Sounds like you do need a broker who has access to a wide variety of loan programs, to find the one that's right for you.

 

[thefed]

Sounds like you do need a broker who has access to a wide variety of loan programs, to find the one that's right for you.

And that my friend, is why I asked for a borker! everyone I've spoken with is either dumb, or doesn't care.

 

[brewer12345]

And that my friend, is why I asked for a borker!  everyone I've spoken with is either dumb, or doesn't care.

Any luck with Donhoff?

 

[yelnad]

My husband is in the business. I'm asking him for his feedback and will post it. He works as an Account Executive for a major lender.

 

[yelnad]

Fed, check your PMs.

My husband says: It's very hard to finance flips because of so much "fixing" of appraisals in the past. People bought a property, and then "flipped" it, and the appraisers fudged the numbers for a cut of the profit. This was happening all over and that's why the requirements are so strict now.

 

[thefed]

UPDATE:


I just got approved! I went with National City, at a local mortgage branch. Get this : .5% over prime, NO closing costs, NO annual fees! I had to let them pay off a small cc (3800) and close that account. That made my DTI ratio work better for them. :

SO, within 14 days of recording my deed, I have been granted a HELOC worth 90% of the ARV (after repair value), and the work isn't quite complete. AND I got very favorable terms! The best I could get on my primary residence HELOC was .5 under prime.




Brewer: Donhoff was a cool guy, but cant deal with anything under 100k (value of home). I will be calling him soon though about some other deals I'm trying to get going this fall.

yelnad: thanks for the info. I appreciate your help!

 

[yelnad]

Congrats!

 

[rogersteciak]

One other thought. You could check out www.prosper.com as a source of funds. No personal experience with this one.

I've never been a borrower at Prosper, but I am a lender. There is no cost to register and post a listing. Lenders may or may not bid on your listing, so your listing may or may not get funded.