Buzz kill in Nebraska

2 Replies

You've lost me. How are you using investor money to get a bank loan? If you have investor money, why do you NEED a bank loan? 

I can't say that I've ever heard of your scenario.

I'm going to make an assumption that Keith may be talking about financing a down payment on a deal through a private lender, then financing the remainder of the deal through a traditional bank mortgage. If my assumption is correct, I am attempting to do the same thing myself. In my situation, I am attempting to relocate to a different city in Nebraska, however I want to keep my current home and use it as a rental property. I have some money stashed away to finance a deal, but not nearly enough to make up a 20% down payment on the type of house I'd like to move into in the city I am looking in. So far, I've checked with two mortgage lenders and both require that the down payment either be seasoned (in my bank account for longer than the 2 most recent months' statements I would use on a mortgage application) or they would require documentation on the private loan and that the loan is secured by using my current residence as collateral. Either way is acceptable to the banks, but seasoning the loan is the easier of the two options. If you don't have collateral securing your private loan, then you must season the loan amount.