Hi everyone, I found a property for $20,000 but the loan officer that I was using said I would have to go to a credit union or bank for a loan because its under $60,000. My question is… when I apply at my CU do I apply for a personal loan or a mortgage loan? Do I apply for the exact amount? Do Credit unions have loans to help repair the property? Please advise. Thank you
Juliette Price: Those are good questions for the specific credit union you are using
Adriel Hudson: Use credit cards to purchase then a simple refi.
Cali Sanders: Thank you
Lana Mendez: Get a heloc if you can. Thats how I got started. Its brilliant and typically cheap money ðŸ‘ðŸ»ðŸ’°
Delaney Warren: Billy Burke cant you get denied a refi if the bank sees your CCs are over utilized or maxed out ?
Adriel Hudson: Delaney Warren: ask your banker they can deny you for any reason. But if the property is free & clear they should give you a loan.
Blakely Dennis: Delaney Warren: if they know youre using it to pay off the CC, theyre usually fine with it
Amari Marshall: Ask the lender at the bank we dont know what products they offer…. their job is to walk you through each of the options just tell them what you want to do
Waylon Cole: If you cant get a loan, make sure you have it under contract and find a money partner…and just split the profit
Cali Sanders: Thanks…no partners
Cali Sanders: Penfed CU
Rebecca Cox: Each credit union and bank may have different programs. Mine is in the boat where if its under 50k we cannot use traditional financing. For such a small amount a personal loan or credit card is your best option because closing cost for a loan at this stage will not make it worth your time.
Amari Chapman: Talk to several CUs. They are the best to answer those questions.
Gael Ramos: Why would you use a CU for this purchase? As an investor you should have some â€œfinancial friendsâ€ on stand by. A hard money loan is the last thing you want. OR get it under contract with the property owner and wholesale it.
Jason Moore: The reason that loan officer couldnt or wouldnt touch it is because hes probably a broker and not a direct lender. Conventional government buyers wont touch anything under 50k as a general rule. This is where the old savings and loans companies specialized in holding the mortgage long term. Its all about the numbers. Anyone who tells you to buy with credit cards and refinance need to be careful. The value restrictions are in all types of home loans. Check with the local direct lender/bank and ask if theyre rules apply to both purchasing and refinancing.
Felix Coleman: You would need a special loan to repair the property. You cant take out more than the purchase amount
Related Post Brewer: When you speak to a lender make sure you are structured as a business and have your articles of organization if you are an LLC.
Israel Huff: An LLC will not have articles of incorporation, at least they better not. That would be fraud!
Annabelle Hawkins: The minimum mortgage is $50,000 do you anticipate needing repairs? If so I would get a renovation loan to give you the extra cash for work needed
Israel Huff: It would appear that this OP may have picked a deal that is too small for their resources. Most lenders are not going to lend on future values. If you do find one, more often than not, they are going to take most (if not all) of the profit in the deal.