How can I buy?

Question

I am trying to buy a 2nd home, but the banks won't lend to me. I can clearly afford the building, have a great score, have enough to put down, etc. The problem is that I switched from being an employee to being self-employed last year, and banks don't want to lend to me because of that (since they can't sell the mortgage). I found the perfect property, and I'm afraid that in 2 years when I have enough history the deal will be gone. I tried 2 separate banks that told me they would hold the paper, but neither wanted to lend and said it was the self-employment history that was the issue.

Any ideas on how I could find financing for this?

Steve Smithy · Answer

I was told it would be about 11%, which in my case doesn't make sense for a mortgage.  That plus the 12% fee makes this really not worth it in my case.  But it might be a good fit for someone else that really needs the money.

Steve Smithy · Answer

I was told they charge a 12% fee, plus an APR of 0-16%, depending on credit.  I haven't spoken with their accounting dept yet to see yet.

Mitch Kronowit · Answer

Thanks Steve. Can you give us an idea of the actual numbers? What are her interest rates like? 20%+ like a credit card or less? What do the fees run?

Thanks again.

Justin Herrema · Answer

Is it bank owned? If it's a local bank offer 20% down and you assume the balance. Otherwise offer 20% to the current owner for a land contract.

Steve Smithy · Answer

I spoke with Maureen, they offer personal or business loans, and they charge a rather high percentage as a fee for finding it for you plus a rate.  Which isn't bad I suppose, if you can't get one otherwise.  Since it is a personal/business loan and not a mortgage it isn't secured by anything specific.

Steve Smithy · Answer

I was going to use it as a vacation home, but I could rent it out while I am not there, it is in a tourist area.

Jeffrey K. · Answer

Are you going to live in this house?

Mitch Kronowit · Answer

I've been waiting about a week for her to answer my questions.

Steve Babiak · Answer

A rather new member supposedly has "stated income" products:
http://www.biggerpockets.com/users/MaureenMo

Not sure if this is for real or not, but that could be your answer.

Jon Holdman · Answer

Is some sort of owner financing possible?

Have a friend or family member who could lend you the money?