Financing in Covina>Question Details

GAMA Contrac…, Both Buyer and Seller in El Monte, CA

Any good lenders anyone can recommend to purchase REO properties?

Asked by GAMA Contracting Services, Inc, El Monte, CA Thu May 12, 2011

I went to Bank of American, Citi Bank, and Wells Fargo to obtain a loan. I was looking to purchase property in horrible condition, fix it up, and resale it. But hard fact is Banks are only lending money if property is in livable condition. My only solution was to get funds from private lenders. So after doing some research, I contacted private lenders (hard-money lenders). Their Interest rate 12% with 4 points on the loan and typically loan 65% of ARV. No that much appealing. I have look every where online and that is the avg rate I get.

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Brent Kluge’s answer
I have an investor RENOVATION loan. 75% LTV (purchase price + Renovation * 25% downpayment), rates in the 5's and only 1 point max (if any). Can do it in ALL 50 States.

Be glad to help.
Web Reference:
1 vote Thank Flag Link Sat May 14, 2011
A few things there, you can still do these loans today as of when I write this but the credit guidelines are always changing so you'll want to seek an experienced Renovation Specialist.

As an investor, your options are very limited, you can still do this (purchase+rehab or refinance+rehab) but you should expect to put down 20-25% and have superior credit (720+). There's another option that doesn't require quite so high of a credit score but it's only available on Fannie Mae owned properties, those properties can be viewed at "Homepath Renovation" eligible properties where a borrower wants to use a Homepath Renovation loan (there's no PMI on these which is why they're so popular) can only be closed via a lender who's on the HomePath Renovation "lender list".

If you'd like assistance obtaining a property like this, I'd be happy to help you, my contact info is in my profile.

As for one of the other posts, USDA loans are for owner occupied loans ONLY, they're not applicable to investment transactions. That post just looked like a copy/paste with lots of key words for a search engine
Web Reference:
0 votes Thank Flag Link Mon Sep 10, 2012
One of our clients received a loan from an independent lender (not hard money) in Orange County at 7%. They may be able to help. If interested we will provide their info. Good luch.
0 votes Thank Flag Link Sun Sep 18, 2011
I have an investor RENOVATION loan. 75% (purchase price + Renovation * 25% down payment), rates in the 5's and only 1 point max (if any). Can do it in ALL 50 States.

Be glad to help.
Web Reference:
0 votes Thank Flag Link Sat May 14, 2011
You are not going to find better rates than what you quoted.
Here's another source for you but you will get the same numbers:
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Thu May 12, 2011
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