Cannot get a conventional Loan due to ETS- Suggestions?

Question

Hello everybody,

I am in the Army and my ETS date is in approximately 11 months. All of the banks I have called require a MINIMUM of 12 months guaranteed employment for me to qualify for a conventional loan. I have just recently been getting into REI and this really put a damper on things. I have found one bank that will give me a 25 year loan with a 5.65% 5 year variable rate, I was wondering if anybody knows a lender who can beat that? I'm located in Clarksville, TN. Or does anybody have any other suggestions as to how I can get a loan? I'm open to doing private money lending, but those % are even higher than the 5.65 I previously mentioned. Thanks for the help.

Alisha Burgfeld · Answer

Sorry Account Closed for such a late response- didn't see it pop up in my notifications for some reason. I'm getting the loan for either a flip or for a buy and hold SFH. (Depending on house specs, etc).

Account Closed · Answer

@Alisha Burgfeld You're probably not going to find a conventional loan for a flip, and loans for rentals are going to be 20% down or more. If you're looking for flip funding, you're looking at private/hard money loans at 2 points and 12% at a minimum, unless you've got friends and family that'll kick in the cash at a lower rate. Find some deals and i'll be more than happy to point you in the right direction or you can assign them and i'll walk ya through it

Account Closed · Answer

@Alisha Burgfeld What is the loan for?

David Dachtera · Answer

@Alisha Burgfeld,

Learn how to attract and engage private lenders. For short term projects like rehab or fix-and-flip, it's more important to get the funding - 6 months of interest won't kill a deal if you've done your homework properly.

One of my colleagues gets 0% for six months then 18%, and 10 points from one of his private lenders. He said he'd do that all day long and twice on Sunday. He does three to four deals a year.