All Forum Posts by: Account Closed
Account Closed has started 1 posts and replied 4 times.
Post: Apparaisal and Line of Credit
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Originally posted by Jon Holdman:
To some extent, this just seems the nature of the beast. Lenders are picky and would just as soon hang onto the money as to lend it out.
You have to be careful with terminology, too. We sometimes throw around terms as if you could look them up in a dictionary and get a common definition. When you started asking about seasoning, and the person looked puzzled, you should realize you're in trouble. They're confused, and even if they go check with someone else, there's a good chance the question they ask someone else isn't really your question. In situations like that, try to move up the food chain and get to someone who has more understanding of what you're trying to do. Lots of folks at any bank will be able to help open a checking account. Only a handful will be able to help with an investor real estate loan. You want to find the person who's done these before, not the person who's doing their very first one.
If you can actually pull off a cash out refi with less than a year's ownership you will have pulled off a miracle. I've been told by multiple banks that doing a refi, even rate and term, with less than a year's ownership is forbidden by FDIC regulations. I did pull off a rate and term refi with a new appraisal a little over a year ago, but even that was a lot of work. And I'm sure it would not have flown were it a cash out. As it was, I had to put some cash into the refi. The broker's company actually originated the loan. I could not find a bank that would originate it. It was quickly sold and is now serviced (and perhaps owned by) Chase. But Chase would not originate the loan.
Thanks Jon and Financexaminer. Yeah I had also spoken with the underwriter handling the loan the week before the appraisal and he had told me that it would be 65% of the appraised value, no mention of lower sales price or appraised value. I also asked the underwriter directly about the seasoning requirements and he said their was none. If there was they shouldn't have taken the app and went through the whole process up to getting the appraisal done. They knew up front when the property was bought. Hopefully I should have an answer either way today. I"ll post back what happens. Thanks,
Post: Apparaisal and Line of Credit
- Posts 4
- Votes 0
Originally posted by Nick Henson:
My biggest problem wasn't that they were asking for receipts but that they made me go through the whole appraisal process and then changed their terms after the appraisal came in. My guess is they didn't think the appraisal would come in as what I did. Thanks.
Post: Apparaisal and Line of Credit
- Posts 4
- Votes 0
Originally posted by Nick Henson:
Thanks Nick appreciate it. Yeah fortunately I try to keep good records. I was thinking about waiting to hit six months also. There is one bank that I dealt with before that will lend 75% on investment properties. Only reason I didn't try them was the seasoning requirement of 6 months they have and the big bank telling me they didn't have any seasoning requirement. Thanks again.
Post: Apparaisal and Line of Credit
- Posts 4
- Votes 0
Great forum here. Was hoping the experts can help me out. I purchased a property in Oct of 2010. The property had been vacant for two years and needed a bunch of work. Purchased the property for $60,000 and put in $25,000 of work. Took a couple of months for the work to be completed then immediately rented it out. Everything great so far. The property is owned free and clear and next is the mistake I think I made. I went to a "big" bank to try and get financing on the property, mistake being going to a "big" bank. I asked up front if they had a seasoning requirement. They told me no. I think the loan officer didn't even know what seasoning was because she looked confused and needed to check. They asked me about how much I thought the property was worth. I told them $130,000. They told me I would need to get a full appraisal done since I bought the property for only $60k and I was saying it was worth $130k. No problem I can understand that although they acted like I invented the wheel and they never heard of value added improvements and they were acting like what I did wasn't possible. They would loan 65% of the appraised value since it is non-owner occupied, no problem, normal. They qualified me for a loan of 65% of 130k, financial, credit wise etc. I wanted them to qualify me first before the appraisal that way I wouldn't be paying for an appraisal if I didn't qualify financially. The appraisal was ordered by the bank, they used their appraiser and the appraisal came back at 140k. Great, well one problem now the bank is telling me instead of loaning 65% of 140k they can only loan 65% of the purchase price (60k). They never told me this from the start, that was the whole reason why they said they needed to order the appraisal that I would get 65% of the appraised value. They are also now saying there is a 12 month seasoning requirement which they said there was none before. Finally they are now asking me for receipts for the work that was put in. That is fine I have sent the receipts to the bank tonight. I've been a customer of this bank for many years, have six figures in money market and cash accounts with them and have been a very good customer with them over the years. I talked to them today when they requested the receipts and they said once they get the receipts they would make me a counter-offer. I was looking for an 85k loan from them which is even less than 65% of appraised value. Has anyone experienced this and have any advice? It leaves a bad taste with me that this bank is doing business with me like this but do all banks do business like this? I have read on here smaller banks are usually better to deal with so I probably should have went with one of them. Thanks.