Getting Financing for HUD home 21 months out of Bankruptcy

Getting Financing for HUD home 21 months out of Bankruptcy

Hi all,

Not sure the order to put this sooo...

I found a HUD property that I am interested in purchasing. It is actually a duplex that was first offered at $125,000 and has now been dropped to $112,000 since it has been been on the market for 30 days. I would like to offer about $105,000.

There are two other duplexs in the area on the market for $139,900 and are renting for $650 a side. These are 3 Bedroom - 2 2/12 with a 1 car garage, 1450 sq ft a side. The same as the one I am wanting. These sold for about $180,000 before the bubble.

I am wanting to buy this property and live on one side and rent the other. I went with a realtor to look at the place and it needs about $4000 in repairs, carpet, paint, and some other expenses.

Now my situation. I am self employed now but I had a bankruptcy and foreclosure that was completed on 4/7/08. I have had a credit card with a $4000 credit line for 20 months with perfect payments, I have been renting a house for $975 a month with no late payments, a new $1000 credit card last month and a personal loan for $5000 for 6 months that I have made monthly payments and paid down to $2500. My Fico score is 685. I also have $5000 for down payment.

My realtor gave me a couple lenders to call and said I need to wait at least 2 maybe 3 years before I could get an FHA loan and alsosaid I would need the 20% down to get conventonal loan.

I would be willing to pay for a higher interest to get a loan but not sure where to go. Even a 7% loan for 100k with taxes and insurance would be around $850 a month which is $150 less than what I am paying for rent. With a renter paying $650, I would be paying $200 a month and have in the area of $35000 in equity.

If I were a bank, I'd loan me the money.. Smiling

Well if I haven't lost you yet, any suggestions on how or if I can get a loan?

I have searched the forums and the only thing I have found is hard money loans but don't think this fits the situation.

Thanks for any input!!

Scott

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Considerations

You may consider contacting more mortgage brokers.
Most mortgage brokers an not very good. In fact is seems that one out of 20 is worth our time.
You may also consider getting involved with a partner that has a better credit and set W-2 income. You may get the loan with them then have the house quit claim deeded to you after the purchase.
You may also look for private money then consider a refinance. Some mortgage brokers have an easier time working a refinance then a finance. This may help the option of a down payment be lessened.

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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125


Further Thouhgt

Ever consider getting a "Credit Partner." A credit partner is one that will meet all the the financial qualifications banks are looking. They would joint venture on the deal with you for a piece or percentage of the deal.

I'm not an expert on this, but this may be something you could check on. Call Dean's people for further assistance.


Considerations

Thanks for the input. I will contact more brokers to see if there is any hope for a loan that I may be able to get before my 2 years from BK. I've been working hard to recover by doing everything right to get scores up and I guess with the way things are so tight with loans, I may just have to wait.

As far as private money, I am not sure where to look. Time to do some more digging. Smiling


Partnerships

homeless_in_MD wrote:
Ever consider getting a "Credit Partner." A credit partner is one that will meet all the the financial qualifications banks are looking. They would joint venture on the deal with you for a piece or percentage of the deal.

I'm not an expert on this, but this may be something you could check on. Call Dean's people for further assistance.

Homeless actually has a great idea. There are many forms of partners that you may consider. You may just ask for a financial partner, a tenant in common or even a credit partner. You can structure the partnership in all kinds of ways. This can be a great idea for those that are credit challenged. Way to go homeless you had a very creative idea.

__________________

If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125


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