who can do an investment mortgage, purchase amount 50K, 30% down, buyer has excellent credit and no debt. We're having trouble due to low loan

Asked by Mmsld, Colorado Springs, CO Fri Sep 10, 2010


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Merritt Noel’s answer
Merritt Noel, , Denver, CO
Mon Sep 13, 2010
The reason you are having trouble getting financing is that you are in violation Section 32 of RESPA. Section 32 limits the total allowable fees associated with the financing of a loan. With such a small loan amount your typical underwriting, process fees and title charges will come close to throwing you out of compliance.

The calculation of the APR is part of the Truth-in-Lending Act (TILA) which is administered by the Federal Reserve Board. Questions concerning TILA as well as Section 32 (high cost loan disclosure) may be directed to the Federal Reserve Board at (202) 452-3693.

I believe that Section 32 states that the fees associated with the financing of a loan cannot exceed 8% of the loan amount being financed? I have to double check that as I have never been out of compliance.

I would look to a credit union for financing such a small loan amount or for your borrower to secure a note loan based on his credit.

Hope my answer helped. Please let me know if I can be of assistance to your further.


Merritt Noel
Sr. Loan Officer
American Liberty Mortgage
Web Reference:  http://www.almortgageinc.com
0 votes
MODUS Real E…, Agent, Denver, CO
Sun Sep 12, 2010
I can broker loans through about 30 different lenders and out of those here is the list from best to worst on rates that offer a loan that small: Amtrust, Suntrust, Citi, Plaza, Bank of America, Metlife, Flagstar, Icon, and Wells Fargo. This is assuming a 740+ FICO as well.

I have never done a loan that small, but would take a look at it to earn potential future business. Feel free to give me a call at 303-305-9400 if you would like to discuss.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sat Sep 11, 2010
Consider trying with any local small community bank(s) and or try any credit union(s).
0 votes
Mary Weaver…, , Glenwood Springs, CO
Fri Sep 10, 2010
Try Wells Fargo or Cherry Creek Mortgage.
0 votes
Mark Kinslow…, Agent, Centennial, CO
Fri Sep 10, 2010

I would suggest calling Matthew Hibler with CB Home Loans 3034091300 Or also Blase Deroco with Ideal Home Loans
3037833983 just tell them Mark Kinslow II sent you to them and they will take great care. I hope this helps!
0 votes
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