I met with a local credit union today and they would do a loan 90% of purchase price and rehab costs or 75% of ARV, whichever is lower.

I also read somewhere that you could have a good mortgage broker work with them to bring their credit up so they could end up buying the property, if you wanted to.I'd want everyone to come out ok if I were to do this type of investing.

I had a line of credit at that time.

It's a "haircut" because a "default" (as it would be considered at any other point in history or for a corporation) would have triggered the Credit Default Swaps (insurance on bonds) which would have been bad.

It won't give me a credit score or report, but comes back if it meets the minimum requirement.

You'll run into the same issues if you try to sell it right now, but smaller local banks will likely allow the sale but you'll probably have to have a GREAT credit score and sizeable down payment.

My credit is great and I have plenty of cash for the down payment, but i'd like to take advantage of low fixed rates by leveraging as much as possible.BTW I am in Kentucky.

The sub-prime mortgage market is dead, and they generally have little cash and poor credit.

Christopher, I do not know anything about your financial situation but if you have decent credit I would be at a local/regional bank when they open tomorrow to find out if it is possible for you to get qualified for a loan.

Do you think that this will hurt my credit?