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July 14, 2008
Financing? How do you do it?
Looking for a bank that will loan for a property that needs work (plumbing, electric, C of O change 3fam + store to 2 family). Love the property but it's frought with financing challenges. I try to be upfront with my financing needs but I am finding a lot of different loan names for the type of loan I need vs what lenders are willing to offer. I see all the renovation occuring around the neighborhood and I am wondering - how the heck are you getting financing and who are you using? Thus far WAMU does not handle these types of loans, the SunTrust recommendation is no longer with the company, Commerce wants to do a commercial loan with a sizeable downpayment, Bofa has had no response and Chase wants an arm and a leg just to fill out the application. I'd even consider a mortgage broker (not my first choice) but I'd like to exhaust my resources first. I know it's a tough marketplace so any advice, helpful hints are appreciated. Maybe I am being to upfront about the amount of renovation that needs to happen? And what do you call these types of loans? I was told a "Rehab", "construction", Purchase + Renovate but they all mean different things to different lenders.
Comments
You should not rule out a broker, they know who has money for what. Check out WaMu's stock price today and you'll see why they have no money.
Posted by: denton at July 14, 2008 7:38 PM
Try Norman Calvo at Universal Mortgage, they have an office in Park Slope and one in the city. He's been helpful to us before.
Posted by: bricktop at July 14, 2008 8:56 PM
I am currently looking to buy in Harlem, and I spent a lot of time researching financing options for a house that needed a gut reno. I would recommend that you contact Wells Fargo - they have a unique product that combines a mortgage loan with a renovation loan - all with one closing. This is the only bank I am aware of with a product like this. It will be hard to get a loan otherwise for a place without a C of O. Good luck!
Posted by: el_salar at July 15, 2008 3:57 PM
Definitely use a broker. . . they get paid if you get a loan, by the bank, not you.
That said, it sounds like you are kind of in over your head anyway, especially in this market.
There's a reason why you should have a hefty downpayment for a project like this.
A lot that can go wrong and the bank doesn't want to be holding the bag when you screw it up or . . . it takes longer than you think to get any cash flow.
Posted by: ontheparkway at July 15, 2008 4:02 PM
Please you Asshats, buy something!! I hope you buy a house you fucktards!
The What
Someday this war is gonna end..
Posted by: what at July 15, 2008 4:04 PM
when we bought we took a mortgage for 80% to purchase. then took a second mortgage for 10% (at a higher rate) for part of the renovation and paid for the rest of the reno using new credit cards with 0% interest for 12 months. managed to finance $200K in construction. avoided having to get a construction loan. and could have refinanced once it was finished since it was worth more but so far haven't done that. the credit card thing is risky i guess, but it worked for us and was less pain. managed to get our gut reno done and have tenants in within 3 1/2 months of closing on a building that had been used as an SRO. So i'm not sure I agree with ontheparkway about you being in over your head... don't know how they can know that without knowing your situation much better
Posted by: 11216 at July 15, 2008 4:08 PM
The American financial system is in meltdown and you STILL want to buy a house??!! I am convinced the American citizen is a brain washed dumbassed morons and there is no help for them.
Read this:" I try to be upfront with my financing needs but I am finding a lot of different loan names for the type of loan I need vs what lenders are willing to offer. I see all the renovation occuring around the neighborhood and I am wondering - how the heck are you getting financing and who are you using?"
No one is using any one, you can't get a mortgage now
"Thus far WAMU does not handle these types of loans, "
WAMU will be done in about 2 weeks. They are insolvent and looking for a buyer.
" SunTrust recommendation is no longer with the company, Commerce wants to do a commercial loan with a sizeable downpayment, Bofa has had no response and Chase wants an arm and a leg just to fill out the application."
The system is on life support and 2009 will be a bad year...
The What
Someday this war is gonna end..
Posted by: what at July 15, 2008 5:32 PM
Thanks all for the advice.
@el salar - I will definitely check out Wells Fargo.
@11216 Good suggestions. I was thinking of something along those lines using the equity in my current properties that I don't have mortgages on and using the rental income so I won't have to much of a noose around my neck. I know cc's are risky but it's a good back pocket option.
& ontheparkway - thanks for the response. not in over my head and need to make sure i stay that way. trying to paint the financing picture before I make any offers on the property. I learned my lesson early on that issue. Just trying to gauge the financing landscape since it's changed so much since my last purchase in 2004.
@denton & bricktar - I'll check out the mortgage broker option after i check in with Wells Fargo. I used a broker the last time and ended up with an indy mac loan. I was kicking myself because I could have gone directly to the bank.
@ the what - brother i hear you on all points and trust, I am not making any decisions without considering every possibility.
Love the opinions - keep 'em coming. Thanks.
Posted by: couldashouldawoulda at July 15, 2008 10:24 PM
Seriously, call Brian Scott Cohen from Wells Fargo he be very honest with you and tell you what can be done. He does not charge an application fee. He hooked up our loan and we had a 500k commercial loan he did for us went smooth as can be
Posted by: Thedish at July 15, 2008 10:30 PM
Seriously, call Brian Scott Cohen from Wells Fargo he be very honest with you and tell you what can be done. He does not charge an application fee. He hooked up our loan and we had a 500k commercial loan he did for us went smooth as can be 718 780 9132
Posted by: Thedish at July 15, 2008 10:30 PM
try Wells and a Broker so you know Wells has the availabilty to broker out as well. I tried the guy above Brian Scott Cohen as Well his service was insane, but he could not do our loan, but definitely recommend him. We needed no income verification on a 4 family Jumbo...He may help you 718 n780 9132 or cell 646 584 8009
Posted by: VfromR at July 15, 2008 10:35 PM
I just got a construction loan. T loan to value was 50%. I pay nterest only on what is used for 12 months at 4.5%. After 12 months it can go permanent or be paid off. I got it through Merrill and Mortgage Family.
Posted by: superstooper at July 16, 2008 9:35 AM
I just got a construction loan. The loan to value was 50%. I pay interest only on what is used for 12 months at 4.5%. After 12 months it can go permanent or be paid off. I got it through Merrill and Mortgage Family.
Posted by: superstooper at July 16, 2008 9:35 AM
Here is a contact at Wells Fargo per the mortgage + renovation loan package:
Marsha Morency
Home Mortgage Consultant
Renovation Specialist
Wells Fargo Home Mortgage
M6534-031
75-20 Astoria Blvd., Suite 130
East Elmhurst, New York 11370
718-310-4343 Tel
866-201-5006 Fax
marsha.morency@wellsfargo.com
Posted by: el_salar at July 17, 2008 5:03 PM
Just stay away from Alphonso Gill at Wells Fargo - he has a horrible reputation.
Check out 203k loans, they are purchase + reno loans and could be what Wells Fargo offers. These I believe are FHA loans.
Posted by: bedstuytownhouse at July 19, 2008 6:31 PM
The post who recommended Marhsa Morency at Wells Fargo obviously has not had contact with her.
She does not know what she is talking about. Seems inexperienced and made comments I knew to be wrong as I have been through the process and was looking to refinance.
Would not be my first, second or third choice...not any choice.
Posted by: liaCh at July 27, 2008 4:32 PM
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