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biernutt5 · Joined: 23 Sep 2009 Posts: 2 1.78 Dollars($)

Hi. I am a first time home buying. I've been trying to get a loan for a house that costs 27,000. Not a problem.

I seem to have a few problems with getting a loan for this property, the first being is it's a double-lot. It's 2 homes on 1 property. Most places I have called said they will not give me a loan for this reason alone.

The second problem is, I'm buying it as an investment property, so I will not be living in it. It's hard getting a loan with a low down payment for this reason. One lender wanted 25% down, which isn't too bad since the house is only 27,000 but we are looking for less.

The third is the home needs repairs. The basement flooded so we need to get that fixed, and although it doesn't absolutely need it, we want to get a new roof and windows. So we need extra cash on top of the home loan.

I'm looking for any advice here. We already have one house, but that was easier to get because it was not me who is taking out the loan. This is my first time buying a house. My credit is not an issue at all. (I guess I have really good credit.) The hard part is getting my feet in the water.

Any advice on where I should be looking for loans, or any other advice at all would be great!

gmakerley · Posted: Thu Sep 24, 2009 10:13 am Post subject:

you have all sorts of things working against you.

it's an investment;
it needs repair;
you're looking for low down payment options;
it's 2 homes on one lot - making it a multi-family situation;
you are a first-time homebuyer, and not for your primary residence.

most lenders are going to say "no" immediately. i think you'll end up with an alternative lender - someone who may have hard money, or someone who's willing to do a portfolio loan. shopping with traditional lenders isn't going to be worth a lot in this case, i believe.

you're probably best off working with a broker whose contacts include that kind of alternative sources.

gmakerley · Posted: Thu Sep 24, 2009 10:13 am Post subject:

oh yeah...you also chose a name for this forum based on a bar snack! lol

biernutt5 · Joined: 23 Sep 2009 Posts: 2 1.78 Dollars($)

"most lenders are going to say "no" immediately. i think you'll end up with an alternative lender - someone who may have hard money, or someone who's willing to do a portfolio loan. shopping with traditional lenders isn't going to be worth a lot in this case, i believe.

you're probably best off working with a broker whose contacts include that kind of alternative sources."

The traditional lenders are all I have tried so far, so that explains some things. What exactly do you mean by alternative lender? Who would be considered an alternative lender? Are we talking mafia here, cause if so i'll back out right now.

A broker is a term I've heard thrown around before and I've tried doing some research on what they are exactly, but I didn't they they would be able to help me. Where do I find a broker exactly?

gmakerley · Posted: Fri Sep 25, 2009 11:12 am Post subject:

mortgage brokers have various contacts. they work with a variety of other lenders who supply the funds for mortgages. i surmise you could find a broker by a simple internet search for "mortgage brokers in (your state)." they can sell loans to wells, bofa, citimortgage, etc., but they also can find other mortgage lenders who do the risky business - as i said, "alternative."

no, that doesn't mean "Mafia Savings Bank" or even "Al Qaeda Bank" - but there are plentiful sources of funds that do deals such as you describe. you'd find interest rates to be higher than on conventional financing.

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