Home Equity Loan

[The Dude]

Hello.

I have bad credit but it's on it's way back up. Just under 600 on all three (BK). I bought an owner finance house and I am 3 years into a 5 year deal. At the end of the contract I want to pull the equity out and buy another multi family home with the cash (this is a two family). And I would like advice on how or where to go. I expect my credit to make it close to 700 or possibly into the 700's by then.

The house will likely appraise around $30000-$35000, so it's not much. Can a dude like me find this loan? I'm trying to get my rental portfolio going.

BTW, I would be interested in hearing from brokers if they think they could find me a loan that works.

Thanks for the replies.

[2ndTimeAround]

Originally Posted by The Dude

Hello.

I have bad credit but it's on it's way back up. Just under 600 on all three (BK). I bought an owner finance house and I am 3 years into a 5 year deal. At the end of the contract I want to pull the equity out and buy another multi family home with the cash (this is a two family). And I would like advice on how or where to go. I expect my credit to make it close to 700 or possibly into the 700's by then.

The house will likely appraise around $30000-$35000, so it's not much. Can a dude like me find this loan? I'm trying to get my rental portfolio going.

BTW, I would be interested in hearing from brokers if they think they could find me a loan that works.

Thanks for the replies.

First of having three bankruptcies, it is going to be a while before you become a member of the 700 credit score club any time soon.

Additionally being that you have a private mortgage company for the last three years, It is unrealistic they have been reporting to the CB's you're making on time payments. Point there is nothing driving your score. You probably have old updated information listed, holding down any new information that could raise your credit score.

3 years into a 5 years deal? Is this a balloon loan, either the entire amount is due after five years, or does it become adjustable where your payment goes up?

Being that the current value is between $30k to $35k, You saying in two years pulling equity out to buy a rental property? This type of reasoning, shows a lack of cognitive thinking.

Now that I beat you up, here's some advice. Think of this as an analogy of constructing a building. First you have to build a solid foundation; not having a solid foundation if a strong wind comes along, it can destroy what you have build. You need a solid foundation before you can go up. Start with your credit.

Get a copy of your credit report, you going to be surprise and a lot what I said above is going to be listed. You need then to focus on disputing old - outdated information, getting it removed or to show it is satisfied. Make it a goal to be a member of the 700 club....

After your credit is cleaned up, then start applying for small secured, loans and paying them off. Don't pay everything off at one time, but pay in schedule payments. That way you driving your credit score back up.

A credit report shows on how responsible you are. If you even want to accomplish your goals of having a rental portfolio, it is important you focus on priorities, by investing in yourself.



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[The Dude]

I'm confused by your reply. You pulled a lot of assumptions from my post. Just because I have very few posts doesn't mean I have no knowledge of my own person credit scores and what is listed on those reports or how I plan to get those numbers up and usable. I don't need that kind of advice.

What I'm looking for is somebody that has experience with home equity loans and low scores and/or has a broker referral.

And in case I wasn't clear. My house will be completely paid off in 2 years after only a 5 year term. That doesn't sound unstable or unsound to me. Like I said, I want to pull the equity out (in two years) and purchase a second investment home for cash and then pay off the equity loan in about 5 years and do it again with both homes, never having more than 50% of my homes with a mortgage. That sounds pretty sound to me with a solid foundation.

So does anybody know of any resources I could look into so that I can have a clear plan of action (IN TWO YEARS).

[2ndTimeAround]

Originally Posted by The Dude

...My house will be completely paid off in 2 years after only a 5 year term..

No pun taken - I've worked in mortgages for eleven years, the last four working for a Nationwide Mortgage Law Firm. I've spoken to 1000's of individual one-on-one about DTI, LTV and credit issues.

Presently I'm speaking everyday to various individuals at some point in default with their mortgage. I know and understand a lot with financing, debts, and credit. I cannot look into the future. Every situation I work with is different then the one before.

I misinterpreted when you said a private leader 3 years into a 5 year deal. It is good that your house will be paid off. You will then have a 100% LTV score. It should be fairly easy to get an equity loan, even with damaged credit.

You don't say what part of NY your in? Seriously a value of $35k, even in two years it is unrealistic the value will increase to the point where there's equity to pull out.

If you meant to say $350k, owning 100% LTV, then will be a lot more opportunistic opportunities. I've originated many loans with people doing what you your looking to do. My first loan I wrote, the lady brought her primary, two years later cashed out and brought a 3family, later a 2family, and a five years ago brought her dream house at age 48. She gets $10,000 in rental monthly. She was very smart getting Sec-8 tenants, she always gets her money and there is low turn-over.

I suggest you open up a bank account at a that offers equity loans. Having an existing relationship already is major points towards being approved.

Again credit is going to be a key ingredient in determining how much and at what rate you are going to be charged.

Answering your question - yes I do know of sub-prime lenders, however since you are two years away. There is enough time to work on your credit. It would be best (less expensive) to go with a conventional lender. Better yet a credit union (today I saw an ad offering 2.15% on a 10yr.)

[The Dude]

Thank you for your reply. I am not hugely concerned at this point about how much the money will cost me via APR but more focused on the actual loan. I know that a credit reporting mortgage will increase my score higher. I am confident that I will pay off the loan within 5 years no matter the terms are as long as there is no early payoff penalty.

Please pm me your personal contact info so we can do business in the future (about 2 years or less).

[jimmebrinsley]

Originally Posted by The Dude

Hello.

I have bad credit but it's on it's way back up. Just under 600 on all three (BK). I bought an owner finance house and I am 3 years into a 5 year deal. At the end of the contract I want to pull the equity out and buy another multi family home with the cash (this is a two family). And I would like advice on how or where to go. I expect my credit to make it close to 700 or possibly into the 700's by then.

The house will likely appraise around $30000-$35000, so it's not much. Can a dude like me find this loan? I'm trying to get my rental portfolio going.

BTW, I would be interested in hearing from brokers if they think they could find me a loan that works.

Thanks for the replies.

I do understand your rope to tough situation and more over,bad credit will be great hinder by next year.When u also have easy loan with payday then it should not be tough for you anymore.
If you are to financing then emergency loan with bad credit can be best sought for.Why not detail it online?