ASAP--need to find a private lender or should I lend???

[Shari Posey]

Here is the situation...a buyer is trying to buy an owner-occupied SFR with 45% down, mortgage amount of approx. $240k. Great credit, good employment history. The problem has to do with her lack of a working visa but she does have the right to work here. It appears she don't fit perfectly into Fannie Mae/Freddie Mac criteria. This seems like a no-brainer for a private lender. I have even considered making the loan but I'm a little short of $240k cash but I might be able to find someone to come in with me for the rest. My question is, how do I find someone who would be interested in making this loan and how fast can it be done? Also, if I can find someone to go in with me to carry the paper, is there someone who can help me write the loan (escrow?)?

[Jeff S.]

Originally posted by Shari Posey:

This seems like a no-brainer for a private lender.

A normal non-owner occupied loan for say, a flip, could be done in a day or two, Shari. Yours sounds like an owner occupied loan, however. This means Safe Act compliance, a broker that has an NMLS license, and a much more rigorous borrower qualification process. Since you’re looking for partners, it also sounds like you’ll need a broker who knows how to fractionalize a note.

These deals tend also to be considerably riskier that those that are non-owner occupied. Plus, your borrower might expect a relatively low interest, long term, “homeowner” type loan which means finding a private lender willing to loan at a relatively unappealing interest rate & term (for you too).

Sorry to burst your bubble, but this but this is not the “no-brainer” I know you’d like to believe. It might be easier to find a conventional lender for your buyer.