Financing in Atlanta>Question Details

ddcros32, Home Buyer in New York, NY

I am looking to get a loan to purchase and fix up a home owner occupied. someone mention a New York lender that will do this at 70% loan to value can

Asked by ddcros32, New York, NY Mon Jul 22, 2013

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Yep. Much like Private Money Group, there are private lenders out there who lend money on residential property. There are even less of them who lend on owner occupied properties. Private Money does not, probably because hard money lenders are not allowed to do so. Private money and hard money are different like commercial and residential lending. One is governed by RESPA, the other is not.

There is a private investor in NY that lends up to 75% of the value of the property. In some cases, they will use the after repair value (ARV). If you are able to find such equity before or after the rehab, you do not have to put any money down. HOWEVER:

Fees up front: $900
Fees due at closing $3200
Points (can be financed): 7% - 75% minus 7% is 68% max LTV

The process is very slow: you pay the fee and submit application and financial info (bank statements are okay instead of tax returns or pay stubs) and credit score (report not needed, just a score).

Wait 2 weeks for approval
Get your property under contract
Submit property info (title, appraisal)
Wait up to 4 weeks to close

You can buy commercial and residential with minimum loan amount of $100,000 (which may increase soon).

Loan is for 5 years (amortized 30 years)
Start rate 9.5% interest only
No prepayment penalty
Available in all states

I have not closed a loan with this investor. I submitted 2 deals that did not close. The first one due to legal problems with the buyer (buyer previously squatted the property) and the second due to the 1 of 3 sellers taking 3 weeks to execute the contract on a multi property purchase deal.

The upfront fee is non refundable.

I am in the process of obtaining a new investor that will offer much better rates and down payment terms. Also, check out a blog I'm working on today regarding using NOTES to obtain financing. Stay tuned...

Bill Polack
404-644-3295
0 votes Thank Flag Link Tue Jul 23, 2013
I think you may be able to do better than that. Are you working with an agent? You really need the advice on your purchase. If you are, I am quite surprised that an FHA loan was not suggested to you. You would have a loan backed by the government, lower down and perhaps lower interest rate. FHA has designed a special loan for this purpose. find a good lender who does these loans. If you have no agent, send me your info and I will recommend some lenders in the Atlanta area bscyphrs@aol.com
0 votes Thank Flag Link Mon Jul 22, 2013
This question was posted in GA, so are you looking for financing in GA or in NY? If you are looking in GA, then there might be a few Renovation options for you based on your individual situation. For an Owner Occupied property, the FHA 203(k) Renovation wiht 3.5% down or Fannie Mae HomeStyle Renovation mortgage might be an option. If it is for a HomePath REO property, then we would also look at HomePath Renovation which offers up to 97% financing.

For NY properties, I would need to refer you to one of our NY licensed Renovation Loan Officers.

If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Mon Jul 22, 2013
Javier, we represent a private lender that have the following lending guidelines:

Private Money/Hard Money Nationwide (Residential and Commercial)

Private Money Group is a nationwide private hard money for real estate financing. Our product is a 3 year, interest only, no prepayment penalty loan. We specialize in time-sensitive deals and can turn around a loan in 12 - 21 days.

Lending parameters:

Interest-Only loans

• Interest Rates: 9.5% - 14%
• Amortization: Interest Only / 360 months
• Loan to value: Up to 89%
• Origination Fee: 5% taken at closing from loan proceeds
• Loan Term: Up to 3 years
• Closing times: 12 - 21 days
• Loan Size: $30,000 to $20,000,000+

Some Collateral types that we are interested in are:

• Non O/O Residential • Office Buildings
• Commercial • Apartment Buildings
• A&D • Hotels / Motels
• LAND • Mixed-Use
• Investments • Shopping Centers
• Rehabs • Warehouses
• Construction • Investment Facilities
• Bridge • Marinas
• Mezzanine • Auto Repair / Mechanic Shops
• Income Producing Property • Gas Stations
• Second Homes • Multi-Family
• Business Financing • Jumbo Properties

To help quickly evaluate a scenario, please provide:

1. 1003 or Loan Application.(if interested, email us at privatemoneygroup@gmx.com for send it)
2. Guarantors Tri-merge Credit Profile (if available).
3. Appraisal (if available).

For more information, please email us at privatemoneygroup@gmx.com


Elgin Cepeda
Private Money Group
Phone #206.339.1834
Email: privatemoneygroup@gmx.com
0 votes Thank Flag Link Mon Jul 22, 2013
It's not necessary to do 70% loan to value. Consider meeting with a Loan Officer and see what your financing options are. If the house needs repairs, your only option very well might be an FHA 203(k) loan, which requires a minimum of 3.5% downpayment. But there are many factors that come into play.

Meet with a Loan Officer and take t from there. I'm always available to meet in one o our Manhattan, Queens and Long Island offices. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Mon Jul 22, 2013
Javier, will you consider Private Money/Hard Money? Please advise. Thanks

Elgin Cepeda
Private Money Group
Phone #206.339.1834
Email: privatemoneygroup@gmx.com
Flag Mon Jul 22, 2013
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