Updated almost 6 years ago on . Most recent reply
No paperwork financing
I’m a newbee so I need some good advice. I cash closed ($75K) on a property 4 weeks ago. It wasn’t my intent to pay cash but Covid happened and many lenders were at a standstill so I ran out of time (it was purchased on auction and I only had 45 days).
I have credit but just recently resigned from my 9-5, so I have no income on paper. I just found a lender that’s willing to give me $42K with no paperwork. Here are the deets: 12 months, no prepay penalty, 12.2% interest only, 1 million in liability insurance (not sure why since I’m not rehabbing).
It’s currently rented and I’m not doing a rehab, I just didn’t want so much of my cash in the house! I plan to keep buying! Taking on the note will add $10,600 in additional closing costs and interest for $42K of my money back. However, I was thinking I could refinance later with better terms. But that’s no guarantee.
Is it worth it to take on this note? Help!!