I'm looking to make a cash only offer on a condo. what would be the best place to get a low interest loan for something like that. I cannot do a rehab loan as the unit is newly redone. I have no debt and excellent credit history.
amd555 said: I would do a mortgage but the offer has to be cash only and anything with financing would be turned down right awayYou can still get a mortgage for a cash offer. In most situations cash offer just means you can't change the deal due to mortgage related issues and glitches. Unless is you are dealing with a NYC co-op board, which may require to go through a gender change operation.
But I take my mortgage recommendation back, because 10K is not really worth the hassle and fees of a mortgage. Best bet is friends and family or credit cards. You can get a heloc almost right after you close to pay them back.
Have you checked with a credit union? Mine offers personal service loans that can be used on anything. The rate is not great, I think around 10%, but it's good in a bind, I suppose. If you have a lot of money in a 401k, maybe you could take a very short term loan from that until you can close and get a HELOC or something similar.
amd555
Member
posted: Nov. 5, 2009 @ 7:57a
I don't have friends family that can help me here. according to the listing agent, all offers with any mortgage will not be accepted as all the banks are rejecting loans for this particular condo. So heloc might be impossible too. I will look into more credit cards.
chrishaw
Happy Member
posted: Nov. 5, 2009 @ 8:46a
amd555 said: I don't have friends family that can help me here. according to the listing agent, all offers with any mortgage will not be accepted as all the banks are rejecting loans for this particular condo. So heloc might be impossible too. I will look into more credit cards.
If the banks are rejecting loans for this building, that should be a red flag that you should consider rejecting it too...
Perhaps you should find out why the banks are rejecting loans for this property. Title issue? Environmental issue?
Let me reiterate, even if you make an all cash offer, you can still get a mortgage for the purchase. It is purely between you and your bank. You can't can's use the mortgage as reasons to change the deal, such as walk away or delay closing.
chrishaw said: amd555 said: I don't have friends family that can help me here. according to the listing agent, all offers with any mortgage will not be accepted as all the banks are rejecting loans for this particular condo. So heloc might be impossible too. I will look into more credit cards.
If the banks are rejecting loans for this building, that should be a red flag that you should consider rejecting it too...
Building is probably not meeting the minimum-percentage of "owner occupied" units that the banks require for mortgage on a condo...or one individual owner/investor owns too high a percentage of the units...
Agree that both are a 'red flag', especially if it's a hard hit market where lots of 'investors' are in foreclosure and not paying their condo association dues & assessments...
amd555
Member
posted: Nov. 5, 2009 @ 9:14a
It is a 8 unit condo. It was renovated 2 years ago. The banks underwriters are rejecting them because 5 units are in or close to foreclosure. 3 are owned by the same family. Everything in the unit is tip top shape.
amd555
Member
posted: Nov. 5, 2009 @ 9:15a
It is a 8 unit condo. It was renovated 2 years ago. The banks underwriters are rejecting them because 5 units are in or close to foreclosure. 3 are owned by the same family. Everything in the unit is tip top shape.
You do realize that you'll be carrying 1/4 of the common costs, instead of 1/8, right?
How's this. Go to prosper, apply for a loan, get everyone you know to sign up for $50 bonus, then have them lend you the $50. Get loan, buy condo, get HEL/OC, pay back prosper, have friends cash out the $50 and send you $25.
amd555 said: It is a 8 unit condo. It was renovated 2 years ago. The banks underwriters are rejecting them because 5 units are in or close to foreclosure. 3 are owned by the same family. Everything in the unit is tip top shape.Ok, it doesn't seem to be a deal breaker, but if I were you I'd check out the HOA's financial statement.
Oh and in case you are really dense.... just because its recently remodeled doesn't mean you can save on an inspector.
lamoof
Tired Member
posted: Nov. 5, 2009 @ 10:54a
Sounds like a big hassle why not wait, save up 10000 and look for another place..the way things are going I am positive another, better deal will turn up!
There is a reason why 5 units are in foreclose, and the seller are selling for so cheap after just recently renovated
amd555
Member
posted: Nov. 5, 2009 @ 11:57a
There are couple of sellers, all 1 family. If there something wrong with the units, an inspection will turn that or the lawyer that checks the title. There are very few units (if any) at this price in this area. BTW, I'm thinking of getting 2 units, 1 for my self and 1 for my mom.
fw9999 said: OK, now I understand. The $10K is to pay off some local Chicago politician with clout.The guy who needs to pay off any politician doesn't need to look so hard for a lousy 10 grand.
I would seriously consider not purchasing this property. You will have a very limited exit strategy. You will not be able to easily sell your unit in its current structure. One owner can not own more than 10% of the complex to qualify for Fannie/Freddie/FHA Financing. Not to mention that so many of the units are in foreclosure seriously limits the financing as well. In the future you may be limited to sell soley to cash buyers which is why you are having to pay cash for your unit. This may be a good idea now but may be a horrible idea in the future.
Ummm.... does no one else see a problem with the OP struggling to come up with 10k? He should have that already just for expected, unexpected expenses.
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