Plz help- need creative funding to buyback my grandmothers reverse mortgage.
As the title implies, my grandmother recently passed away and had a reverse mortgage on the home with a debt of $400,000 house is worth at least $800,000.
Main issue is I am self-employed, and my income is really low, but my credit score good (700-770).
A large room with its own entrance and bathroom was added onto the house like the 70's which can probably be turned into an ADU. I know there are some programs encouraging this by giving grants for this due to the housing crisis. But above all, my income is the problem. Since I can rent out the ADU I know some lenders would count that 75% of potential income onto my income, but they are hard to come by.
Anyone with info, or anyone interested in investing with me on this great deal. If your experienced in creative funding, lets talk!
Thanks!!
Melissa, 33
Hayward, CA
Quote from @Melissa Marques:
As the title implies, my grandmother recently passed away and had a reverse mortgage on the home with a debt of $400,000 house is worth at least $800,000.
Main issue is I am self-employed, and my income is really low, but my credit score good (700-770).
A large room with its own entrance and bathroom was added onto the house like the 70's which can probably be turned into an ADU. I know there are some programs encouraging this by giving grants for this due to the housing crisis. But above all, my income is the problem. Since I can rent out the ADU I know some lenders would count that 75% of potential income onto my income, but they are hard to come by.
Anyone with info, or anyone interested in investing with me on this great deal. If your experienced in creative funding, lets talk!
Thanks!!
Melissa, 33
Hayward, CA
Has the property been probated?
How many heirs are there?
Does eveyone agree to let you Buy It?
How much time before the bank sells the house at foreclosure?
It will not go through probate. There are 3 heirs and yes they agree to let me buy it.
We probably have around 6 months
Sorry to hear about your GMa's passing! :(
There are options, even for self employed. i have a lender, for example, which will use 100% of your 1099 income to qualify you, as opposed to your tax returns (fannie and freddie) with all of your write-offs.
You could also look into bank statement loans, which use your deposits to qualify you instead of your tax returns.
If you don't intend to live there, you could also try to finance using some type of DSCR loan, which would be based off the tenants paying rent as opposed to you as a borrower.
i suggest you reach out to a mortgage broker (broker specifically, as they should have lending OPTIONS for you) to take a look at your entire financial picture and tell you what would be your best solution.
Best of luck!
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Quote from @Melissa Marques:
As the title implies, my grandmother recently passed away and had a reverse mortgage on the home with a debt of $400,000 house is worth at least $800,000.
Main issue is I am self-employed, and my income is really low, but my credit score good (700-770).
A large room with its own entrance and bathroom was added onto the house like the 70's which can probably be turned into an ADU. I know there are some programs encouraging this by giving grants for this due to the housing crisis. But above all, my income is the problem. Since I can rent out the ADU I know some lenders would count that 75% of potential income onto my income, but they are hard to come by.
Anyone with info, or anyone interested in investing with me on this great deal. If your experienced in creative funding, lets talk!
Thanks!!
Melissa, 33
Hayward, CA
You should be able to refinance the property once you and the other heirs are in title. You can go up to 75% loan to value cash out meaning your loan amount will be 600K. Maybe the heirs will take a little less than market and let you keep the property in the family. This loan doesn't require income other than what you can get for the property and has to be non-owner occupied.
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Broker
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@Melissa Marques..is the property going to be non-owner occupied? Or are you trying to buy it to live in it? Condolences to your grandmother's passing (I'm going through the same thing right now, literally). That first question is going to be the kicker of what your options are and what potential loan options that you could utilize. There are definitely programs that allow for self-employed people to get creative, but that's where I'd start. PM if you need to. Thanks
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- Virginia
@Melissa Marques
My condolences.
Have you considered seeing if someone would do a lease option with you? If it’s owner occupied it will be extemely difficult to get a loan because of government regulations
Unfortunately if you cannot afford it your best bet may be to try and sell it before it goes to auction.
Quote from @Sasha Mohammed:
Sorry to hear about your GMa's passing! :(
There are options, even for self employed. i have a lender, for example, which will use 100% of your 1099 income to qualify you, as opposed to your tax returns (fannie and freddie) with all of your write-offs.
You could also look into bank statement loans, which use your deposits to qualify you instead of your tax returns.
If you don't intend to live there, you could also try to finance using some type of DSCR loan, which would be based off the tenants paying rent as opposed to you as a borrower.
i suggest you reach out to a mortgage broker (broker specifically, as they should have lending OPTIONS for you) to take a look at your entire financial picture and tell you what would be your best solution.
Best of luck!
Thank you so much
Quote from @Chris Seveney:
@Melissa Marques
My condolences.
Have you considered seeing if someone would do a lease option with you? If it’s owner occupied it will be extemely difficult to get a loan because of government regulations
Unfortunately if you cannot afford it your best bet may be to try and sell it before it goes to auction.
Thank you so much for your reply. Could you explain to me what a lease option is and how to go about it that way?
#1 All Forums Contributor
- Investor
- Virginia
@Melissa Marques
First off, is the house is still In her name or has it been in probate or ownership transferred?
If so, you could sell the home to someone and either sell it at a discount and have the discount credit rent back to you to allow you to live in it and also include a lease option where you rent it for a period of time and have say 5 years to buy it from them.
We have done things like long term leases (10 years) with options etc to create win wins for both sides
Quote from @Chris Seveney:This sounds like a good option.
@Melissa Marques
First off, is the house is still In her name or has it been in probate or ownership transferred?
If so, you could sell the home to someone and either sell it at a discount and have the discount credit rent back to you to allow you to live in it and also include a lease option where you rent it for a period of time and have say 5 years to buy it from them.
We have done things like long term leases (10 years) with options etc to create win wins for both sides
How do i find buyers who are willing to buy and lease to purchase?
Quote from @Chris Seveney:
@Melissa Marques
First off, is the house is still In her name or has it been in probate or ownership transferred?
If so, you could sell the home to someone and either sell it at a discount and have the discount credit rent back to you to allow you to live in it and also include a lease option where you rent it for a period of time and have say 5 years to buy it from them.
We have done things like long term leases (10 years) with options etc to create win wins for both sides
The house is in a trust and will not go to probate
#1 All Forums Contributor
- Investor
- Virginia
Quote from @Melissa Marques:
Quote from @Chris Seveney:This sounds like a good option.
@Melissa Marques
First off, is the house is still In her name or has it been in probate or ownership transferred?
If so, you could sell the home to someone and either sell it at a discount and have the discount credit rent back to you to allow you to live in it and also include a lease option where you rent it for a period of time and have say 5 years to buy it from them.
We have done things like long term leases (10 years) with options etc to create win wins for both sides
How do i find buyers who are willing to buy and lease to purchase?
Market the deal to them. We would be happy to take a look at it.
