Home Buying in Providence>Question Details

Bvelasquez89, Home Buyer in East Providence, RI

How do I buy home with an investor?

Asked by Bvelasquez89, East Providence, RI Wed Feb 8, 2012

I am wanting to purchase a home and do not know how to go about this. My husband has a good job making 58,000 this past year. We don't have any debt right now (cars are paid for and were renting) but a bankrupcy in my husbands credit prevents us from being able to obtain an ordinary mortgage even though we have about 30-40,000 to put down. Im not sure what to do but my cousin just purchased a home through an investor and he makes a lot less than my husband. Does anyone know how purchasing a home through an investor works? Thank you :)

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6
Hi,
If you buy with an investor, someone will still have to qualify for a loan and if you are going to be on the Deed, you will also have to qualify. If the investor has to take out a loan on his own, the interest rate will be higher than a conventional loan, the downpayment will most likely be at least 25% and there would be a possibility of PMI (Private Mortgage Insurance).

If you are open to suggestions and alternative financing options, send me an e-mail with your contact information. Here's the promise, I will not ask you for any money, I will give you plenty of options to choose from and you make the decision.
0 votes Thank Flag Link Wed Apr 25, 2012
What you would need is a co-signer. Your doing the right thing by not having any debt and having a sizeable down payment. As long as you are paying your bills on time and have a co-signer with good credit and no major discrepancies (like bankruptcy or bills in collections) on their credit report, you should be fine.

I specialize in investment properties. Feel free to contact me if you need any more information.

Best of Luck & Happy House hunting!

Michael O'Brien
Peluso Properties
401-340-5350
michaelfobrien@gmail.com
0 votes Thank Flag Link Wed Apr 25, 2012
Well let me jump on top of the pile here by starting off with a big thumbs up to the previous answers to this question. Elaine is correct that with 2 years of distance between the bankruptcy and the purchase will put you in a better position to earn a conventional mortgage (and... a better interest rate).

As a Realtor... I have worked with my fair share of private lenders. As a matter of fact, my close friend is an attorney who handles the paperwork for a group of private investors so I probably see more of these types of deals than the average agent. One thing I can say is that the interest rate is NEVER pretty. So you really have to weigh your options carefully. You need to determine if the loan is going to come due too quickly for you to refinance into a better deal... (conventionally).

In the end... if you are looking for "investors" (or "hard-money lenders, as we call them in the business)... you can certainly give me a call and I can connect you with a few local. However... if you are looking to learn more about the process... there are many different scenario's that might be better relayed and exchanged in an actual conversation.

Either way, I'm here if you need me. Have a great day!



with many privaA private lend
0 votes Thank Flag Link Wed Feb 8, 2012
Hi, Has your husband's bankrupcy been discharged and filed at the courthouse? Once this has been done, you should be able to get some type of financing, however, if you wait 2 years after discharge, you will be in a great position to get better terms and rates on a mortgage, especially with the down payment that you have.
I have a couple of good mortgage brokers that I work with, if you give me a call, I will put you in touch with them and you can see if and what you would qualify for now. Once that is determined, I can help you find a home. There would be no cost to you for this service. Thank you and I look forward to hearing from you.

Elaine Blomenberg
TOPNOTCH Team
225-0316
topnotch@albertrealtors.com
0 votes Thank Flag Link Wed Feb 8, 2012
Good Morning Bvelasquez,

You would need to find an investor who is willing to do seller financing on a property or find a private mortgage lender who is willing to look beyond just the bankruptcy and look at the solid down payment. With 20% down you should be able to find some form of financing you may just pay a little higher rate due to the risk with the credit history.

Let me know if you need any assistance in finding someone to help, but that should get you started.

Happy Hunting,
Chris
Web Reference: http://cjcsellshomes.com
0 votes Thank Flag Link Wed Feb 8, 2012
Be careful.....You can do this when an investor is willing to "Hold Paper" which is the loan amout you agrre to payback to the investor. This is a slippery slope to be on. You must check with your tax professional and your lawyer. Do not enter in to any contract to purchase without doing this. Better to be safe than sorry. Also keep in mind that there are many "scammers" out there who want to steal your money.
"Caviot Emptor" Let the Buyer Beware.
0 votes Thank Flag Link Wed Feb 8, 2012
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