Need Advice On A Loan

Buckeye

I am currently building a house with bank financing but the house is only 75% complete. I have it sold for full price to a custumer w/ a 740+ Beacon score and we are having trouble obtaining a new contruction/perm loan in her name. My bank needs to be paid off by 2/28/07. Any advice?

peahee

Go through a broker, might cost you a little more but they are more flexible. Banks are hard to get loans from, at least that's what I've heard and seen.

Peahee

Danahy

Have her call and lower her limits with credit cards and such, her score will quickly rise.

peahee

Also have her OPT out of recieving any new credit card advertisement and calls but that's for longer term credit improvements though.

Peahee

Buckeye

The problem is not her credit score but the fact that the bank does not want to loan money on an imcomplete house. Once the house is complete, her loan is approved. My problem is that I don't have the construction financing left to finish the house

Brian

I'm no expert on the subject, but a score of 740 should put her in the excellent range. I would suspect that there is more to the story than just her credit score. Maybe she's asking for more than her income would make reasonable?

Brian Phillips

__________________
Houston Interior Painting
Houston Exterior Painting
Houston Painting Contractor

peahee

Yeah, sounds like her debt to income might be too high. 740 credit score can get you a lot of things.
Any chance of you getting a home equity out on your house to finish the job?

__________________
-Peahee
www.qcbinc.net

Buckeye

Contract amt. is $449,000.00 and has appraised. My bank payoff is approx. $255,000.00. The estimated cost to complete the house is $38,000.00. We are asking her bank(Chase) to fund 255,000 to payoff my bank and escrow 1.5 times 38,000.00 for finishing the house which would allow me to cash out 137,000.00 at closing and still have more than enough money escrowed to draw on to finish the house. I'm looking for a bank or lender that wants to do this loan

Buckeye

not enough time to close on another loan

Buckeye

not enough time to close on another loan

peahee

I closed on my Washington Mutual HELOC in 3 days, money was in my hands on the 4th day. Either that or find some quick investors which might be a little harder. Sorry, can't help much.

__________________
-Peahee
www.qcbinc.net

Buckeye

The borrower is trying to get a 100% loan on a stated income loan. Her credit is fine for the loan, the problem is still finding a lender to do the construction aspect of the loan. I would secure an investor on the property if you know of anyone. Their money (392,000 )would be advance for no more than 35 days. I appreciate your advice

dougchips

Did you mean lower her balances? It is better to have a large amount available and a low balance. For example 3 credit cards with a combined limit of $50,000 and a balance of $5,000 is better than $10,000 available limit and $3,000 balance.

Buckeye

Her score is fine. Problem is getting a new construction loan to pay off my loan and the personal money I have in the house. If you have any thoughts, read my previous details and get back to me. Thanks

sheeter

Buckeye,
What were the terms of the original construction loan? Are you in a position to get an extension on the construction loan, and take an equity loan to complete the construction? I would think that if you were to get a contract agreement drawn up where your buyer commits to purchasing the home upon completion, it would be a safe investment for your bank to give you an extension. Otherwise, I would contact a capital investment company to apply for a short term loan for working capital, the rates will be high, but it may be your only option. They will want to see your company's financial staements. Additionally, I'm not sure how you arrived at this predicament, but if you don't have one already, develop a business plan that maps out your business strategy for growth and financial strength.

__________________
Sheeter
"It's hard to be humble when your good"

Buckeye

It's a long story as to how this situation occured. Currently under a bank extension and having to pay huge fees. The buyer is already approved for her end loan, I'm just trying to figure a way to get some of my working capital back out of the house and still leave plenty of money on the new construction loan to finish the house. Do you have any suggestions for a Cap. Invest. Co?

Teetorbilt

Chase is one of the few co's. that I've had much luck with. I'd load up all of my papers and hit the nearest branch. A face to face is always best.

__________________
You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

sheeter

My only advise is to seek out a commercial bank. In my area of NC, we have several such as Paragon in Raleigh and there is one in Durham. They advertise in business journals a lot for capital banking or investment banking. You might contact American Express business services. I wish I could offer you more definitive advise, but I wish you luck. I once found myself in a similar situation when I was self employed and it put me out of business, so I understand the difficulty you face.

__________________
Sheeter
"It's hard to be humble when your good"

stoneanthony200

Talk to the loan officer of the bank that is providing the loan to your purchaser. See if they will give you a bridge loan till closing? Or maybe close in escrow now?

On a lighter note: It will take the bank at least 90 days to foreclose on your loan – SO HURRY UP AND FINISH THE HOUSE AND CLOSE!!

__________________
Stone Anthony, Owner/Builder
SVA Holdings, LLC
617 1st NH TPKE, Unit #2, Northwood, NH 03261
(603) 608-3321 Phone, (206) 203-2139 Fax