Posted on: 12th Apr, 2007 07:22 pm
I have just rehabbed a house. There is no mortgage due on the house. It is valued at approximatelt $50,000. I use it as a rent house, so banks, and everywhere else that I've checked, tell me that with the LTV at 90% for non-occupied residences, that I don't qualify for their minimum loan amount of $50,000. I'm also self employed. What can I do to secure a loan? I'd like to take the equity and rehab another one.
Did you check out with a broker? Usually brokers have contacts with a number of national lenders in the market and they may be able to help you find a suitable lender or a loan company for your offer.
Hi Lee,
Welcome to the forums.
Usually non-owner occupied mortgages are considered riskier than the owner-occupied ones loans and therefore lenders offering such loans require you to pay higher interest rates on the amount you borrow.
Lenders and loan companies may have varied criteria for a 90% LTV financing on non-owner occupied residence. There are loan providers who require you to have a credit score higher than 720 (around 740, if you are self-employed) if you wish to qualify for loans against non-owner occupied or investment property.
I am not sure but is your credit score somewhere around the 740 mark? If not, may be that's the reason why you aren't getting the financing. Or may be there's something wrong with your credit report. Did you ask the lenders as to why you won't be able to get the loan?
Thanks,
Sara
Welcome to the forums.
Usually non-owner occupied mortgages are considered riskier than the owner-occupied ones loans and therefore lenders offering such loans require you to pay higher interest rates on the amount you borrow.
Lenders and loan companies may have varied criteria for a 90% LTV financing on non-owner occupied residence. There are loan providers who require you to have a credit score higher than 720 (around 740, if you are self-employed) if you wish to qualify for loans against non-owner occupied or investment property.
I am not sure but is your credit score somewhere around the 740 mark? If not, may be that's the reason why you aren't getting the financing. Or may be there's something wrong with your credit report. Did you ask the lenders as to why you won't be able to get the loan?
Thanks,
Sara
Contrary to Ryan's advice, the problem with a smaller loan amount through a mortgage broker is that they will often consider this small of a loan not worth their investment in time. I'd say you are better off going directly to a bank like Chase, Wells Fargo, etc. They don't have minimum loan amount limits.
