Great question Pam! Are you looking to buy a home? I have worked with several lenders in the recent past that you could ask that question to. Feel free to contact me, so that I can give you their contact information. I look forward to helping you. 812-319-4731... more
We use small local banks for this type of deal. They usually want 10% down and will loan the purchase price plus the rehab money, terms are 1 year @ 5%, we have a good track record with them. ps usually 1 pt for fees.... more
The individual is correct regarding the bridge loan but that is a loan that has to go through underwriting, etc just like your normal mortgage so if you have any doubt of not being able to close on the sale of your home in time for your closing date for the purchase of your new home, I would go ahead & start the process. Your debt to income ratio will increase because you have to be approved for the debt of the bridge loan, the new home and the current home. I would suggest contacting a lender regarding that program.
Mortgage Consultant - MetLife Home Loans- 885-7838.... more
Thanks to all for your input. I decided even though its a legitimate transaction, the IRS may look on it otherwise. I can't afford the house without the credit, so its not work the risk. Thanks again!... more