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100% Investor financing does exist but is many times difficult
to achieve using conventional lending. The best way
to typically do this is using a Creative Financing method,
rather then conventional programs. Using Creative
Financing, it becomes a very realistic and reasonable option
to buy a property with little or no money down if the mortgage
broker and borrower work together prior to the purchase
contract signing. In doing so, it ensures that the
elements are in place that are needed specific to the method
they will be using and their goals.
For example, properties bought in foreclosure need to be
purchased, and then refinanced afterward using a no-seasoning
cash out lender that doesn't care what the property was
bought for, only what it currently appraises for.
This would allow the borrower to get back the money they
put towards a down payment via the refinance. This
two closing approach is used because banks typically don't
allow much in the way of creative financing so it must first
be closed using a conventional program.
On the other hand, if a
property is being sold by an individual, there is much more
flexibility because the seller may carry a second mortgage,
increase the sales price and pay a higher realtor commission
that can then be partially rebated back to the buyer, pay
buyer closing costs, etc.
These are some of the methods that can be used to create a no-money down scenario. Through experience, our staff is familiar with most creative financing options and can help brainstorm with a client as to the best path pertinent to the property and the borrower's individual situational goal.
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