The closest institutional loan I have heard of in your price range is to get a 75% first, meaning that the seller would need to carry more like 15%, than only 10%.
If you find such a seller, but can't locate a lender who can come up with the underlying first mortgage, you MAY have to get really creative, with something like an All Inclusive Trust Deed ( A.I.T.D.) or contract of sale. The owner remains on title, and you make payments to a holding company - usually an escrow like entity - and they make payment to the owner, taxes, and the lender.
There are some risk to both seller and buyer, but if done correctly, it can get you into the property and serve you well for 3 to 5 years, until you're more capable of getting a new 80% loan.
It's not a perfect scenario, but there are many of us "old-timers" who have done them over the years, and it IS a way around today's more restrictive lender guidelines. All you need are two good agents - one for each party - plus savvy holding and escrow companies.
If you take over someone's loan it will not be reported to the credit agencies and if you default the seller is still liable for the mortgage. I don't think that's going to happen.
I specialize in Portfolio Loans. This is the highest we can go on a Combined Loan to Value (CLTV) 740 FICO â€¢ 90% CLTV Seller Carry Back 80/10/10 up to $1,100,000. All lenders have restrictions on how high the CLTV can go and to what dollar amount. The only other option I have is with a 760 FICO â€¢ 80% LTV to $2,000,000.
If you wish to discuss this further, please contact me. You can also go to my website under Jumbo Loan
Programs to see our niche products and see our Featured Lenders Rates.
Happy funding, Rudi
I am located in Newport Beach and know the area very well. Feel free to contact me if you are not already committed to another agent.
Yes, I believe you can but you need the seller to participate in the financing. If you would like a lender referral, I have an excellent one. If you have good credit, I think the seller will only need to add 10% as seller-financing.
I work in Newport Beach and Newport Coast and would be happy to answer any questions you have about that area. What I'm seeing is more and more equity sellers coming onto the market...and this is exactly what you need. They can provide financing and are motivated to do so in your price range. The problem we need to overcome is that they might also want "top dollar" which we do not want to pay....so we will need to find the right situation...if you are in no hurry, then we can wait for the right combination of seller equity and price.
If you would like to speak more.....shoot me an email or call me anytime.
80% LTV Jumbo 1st mortgage up to $2M
10% Seller Financed 2nd
Seller financing in Newport is very common, in fact it can help to close a deal a lot of times, because the seller gets to earn interest on the note they carry.
Let me know if you'd like to sit down and see if we can make this work.
Steven @ MonumentFin.com
If you have any questions, don't hesitate to contact me.
Bank of America Home Loans