No Doc/ARV...Does It Exist?

Question

Please excuse my ignorance. I am just getting started, so please be gentle. LOL!

I just spoke with a lender today, that was checking on a No Doc loan for me.
We seemed to have miscommunicated somewhere along the line because she did not realize that I needed to capture my holding costs, closing costs, and rehab costs within the loan. She presented a 90% No Doc based on my offer.
Once we straightened out our communication gap, she said that she was
going to try to find a loan that would fit my needs.
She will get back with me on Monday.

The property is listed at $44,900.
I offered $37,500.
Rehab costs are approx. $15,000.
I figured approx. $4500 for 6 months holding costs.
So, I am figuring on a loan for approx. $60,000.
The Comps for the neighborhood are at $85,000+.

I prefer No Doc because my credit is excellent, but my asset to liability
and income is not good.

Is there such a thing as No Doc based on ARV?

If someone knows of, or can offer, such please respond.

Thanks.

Walter Shkolnik · Answer

First of all, the Whyfor is not my client. I was just answering his question.

And I would like to make it a point: "ANSWERING IT CORRECTLY"

And here is what Investment Loans wrote: "Yes there are lenders that can funds deals like this. No this is not a "HUGE" strecth. Actually very common."

Which is not true. No lender can do a no doc deal like that, unless its private money. Again, I'm asking you how would you know if he needs a no doc or not?

Can anyone else on the forum read the Whyfor's question and comment?

Ben Carmona · Answer

Dana,

My pleasure. Thank you for an opportunity to serve you in meeting your investment goals.

Looking forward to hearing from you in the future.

Please let me know if I can ever assist you with conventional purchases or cash out refinances with no seasoning.

Walter Shkolnik · Answer

I'm glad that this deal worked out for you. Sorry couldn't help.

Do you mind sharing if it was a mortgage company that funded your loan, or a private party.

Did you state your line of busniess, income, and assets on the application?

N/A N/A · Answer

Ben....wipe that smirk off your face :)

Nice job and follow-through.

N/A N/A · Answer

Just an update.

First and foremost, Thank you Ben Carmona!
I just closed today! :D

With your help, I was able to obtain a 70% of ARV loan. 
The properties ARV appraised at $98.000, which meant
a loan for $68,600.

Again, thank you for your assistance, which made this possible!

Chris Sanders · Answer

WHYFOR,

You can get that deal all day long but it's obviously hard money.  These other brokers saying it can't be done are thinking of conventional lenders.  Your credit worthiness will play a part but your income typically won't.  These are hard equity lenders.  They don't necessarily care about your income.  Besides, you're financing your carrying costs anyway.

Go to Liquidbrick.com.  He's a guy out of New York.  He's just one of many lenders I know will do it...

Chris

Walter Shkolnik · Answer

Investment Loans,

Do you really know what a No Doc Loan is?

I can assure you that there isn't a lender that offers a No Doc loan like that.

One think that experienced mortgage broker doesn't do is waists borrower's time and offers unrealistic expectations.

Respectfully,

Walter Shkolnik · Answer

Investment Loans,

I never disputed the rehab part of it. Read the original post. What is the borrower asking for? No Doc.

Can you at least admit that you can't get a No Doc deal for this guy? Can you do that?

Ben Carmona · Answer

Thanks Wally for sharing your ignorance of loan products.

That's funny....I knew stepping into this thread with my reply that there'd be a response from you.  I have to applogozie for my puppeteer routine....I should have also stated that I am an experienced mortgage broker, been in the industry for 8 years, the last 2 specializing in investment loans.

I could give you the names of over 25 people that have successfully closed rehab loans based upon the after repaired value with no verification of income or assets.

You'll notice that in this scenario that the client suspected he would need a "no doc" loan because of low income and assets.  As most will know, a no doc means no employment, income, or assets.  Clearly he does not need a no doc loan because he has these.  What is needed is a lender that looks at the deal and equity position.

Now go back and ready my post.  As it clearly states... deals like this can be done and are done every day.

Leave the investment loans to the experts.

Respectfully,

Walter Shkolnik · Answer

No problem Whyfor.

You were asking specifically: "Is there such a thing as No Doc based on ARV?", and that was the question that I was answering.