So, after 2+ months of being told there would be no problem getting a mortgage but would need to be a commercial mortgage with 30% down, we heard today from the credit union - we were turned down.
Looking for suggestions on a financial institution that will give us a mortgage for $45k - $50k for the rental property we have under contract in Pontiac.
We are Canadian & already own 2 sfr income properties in Warren, Mi.
Would you be willing to refi all three, 50K is low and hard to sale.
I'll say this. Most commercial lenders do not lend in such low amounts. Figure $75-$100k is a typically minimum loan amount requirement. However, they are the ones most likely to be flexible with foreign investors/foreign nationals with US credit history and bank accounts. Typically, they want more skin in the game 50%-65% LTV is common.
@Nancy Webb my advice to you would be to go on google and call every single local bank that comes up for Pontiac and the few neighboring cities. You may find flexibility in something hyperlocal. Local banks in Pontiac link
Another thought, if nobody will lend on the property you have under contract, then maybe consider cash out refinancing the properties you already own and use the proceeds to buy the Pontiac property cash assuming you have enough equity and the seller will wait that long.
Best of luck to you and I hope you close on the Pontiac deal!
Timothy, we would be interested. How would this work? We this would be a line of credit?
Thanks Alex, we were initially given the opportunity to get a line of credit on the 2 houses we own at a higher interest rate, but that too was denied to us. This was a small credit union local to Metro Detroit.
I have already started a google search for another, investor friendly bank/credit union.
Will do, thanks Hai for the feedback.
Is it easy to get credit cards in Canada? You could use balance transfer offers, as long as you are able to make the payments and transfer or otherwise pay off the balances when the promotional period is over. I would try to secure private financing or get a partner, otherwise. I do business in Pontiac, but all of my cash is tied up at the moment.
Just to be clear about the credit cards:
1. Use "balance transfer checks".
2. Write the checks to yourself.
3. Deposit the checks into your account.
A lot of people don't know that you can do that, so I thought I'd share.