 Articles tagged: LTV
<< previous page 1 next page>> written by William King
Hard money and bridge loans for real estate written by Dale Rogers
A passerby walking down the street discovers a wallet beside a stranger and it just so happens to be packed with wads of cash. The newfound friend proposes splitting the cash if the owner can’t be found. written by Dale Rogers
Many buyers who have jobs and means to make monthly housing expenses have for what ever reasons have lousy credit. Sometimes bad things happen to good people. It could have been a recent forced job change, family illness, auto accident, death in the family causing a one or two month interruption in the family cash flow. Credit FICO scores plummeted in the lower 500 range. Things are turning around now, but the challenged credit history remains. What to do? If a family does not wish to wait five years to turn their credit around there are several possibilities. With these lower scores many B/C Subprime Mortgage Lenders will allow anywhere from 80% to a 95% Loan To Value Mortgage. At the same time these mortgage lenders may allow a 100% Combined Loan To Value (CLTV) mortgage with the seller holding a second mortgage for the difference. Mortgage markets change all the time based on secondary mortgage experiences with foreclosures and slow payment histories. Right now, this scenario is possible in this current slow real estate market. In addition, the lenders will allow the seller to pay in many cases up to 6% of the buyer’s closing costs and prepaid expenses such as the annual hazard insurance premium and escrows for the taxes and insurance. In some cases, these credit-challenged buyers using this financing technique can buy a property with little out of pocket. In the past, these buyers may have been kicked to the curb and told to come back when they have some money saved and improved their credit. Not today, at least by mortgage brokers who know their products. Buyers need to seek and qualify Realtors and Mortgage Brokers who are willing to go to the wall for them to get the deal done. written by Dale Rogers
In a soft real estate market where owners need to sell and have a high degree of motivation to dispose of their property. This is the opportunity that a buyer with challenged credit history can seek to “help” a seller out of their current dilemma by arranging sale terms that will help both buyer and seller. These scenarios may not work for anyone who has zero options, zero income and zero means to pay anything back. It is rather, for those who are fighting their way back and do have options, have income and now have means to meet their obligations on a negotiated deal. This will not work if a buyer throws their hands up and gives up to the possibility of buying a property. This opportunity will work for those buyers who have a need as well as a burning desire in their belly to buy something that will meet their family goals and will do what is necessary to make it happen. written by Dale Rogers
The “Universal Default” trigger mechanism used by many credit card companies who regularly check payment history in the bureaus. If they find a 30-day late or other derogatory information the interest rates on ALL the credit cards can be accelerated in many cases to the maximum legal limit. Thus, the sweet heart introductory rates went in some cases from 8.5% to 29.99% + to varying degrees.
The “125%” Combined Loan-To-Value Second Mortgage can be utilized to roll high interest rate credit cards down to say 14.5% up to a loan limit in many cases to $75,000. It’s not a cure all but rather a temporary band aid to increase monthly cash flow while fully amortizing the debt. Aggressive payment of this second can make some sense as this rate is 14.5% plus depending on credit scores and exact loan to value percentages.
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