It has been awhile since I have posted and thats because I have been working my butt off!! Right now I have a $450+ cashflow deal locked up in an interesting way. You know how some Real Estate Agents ask for either Proof of Funds OR a Letter of Approval? They always want one or the other, right?
I have both.
On my Purchase agreement it is stated the "Buyer reserves the right to have the choice of either cash or convential financing to use at close".
The point is never let an agent choose for you, let the sellers decide what they are comfortable with!!
Now here is the exciting part for me! My credit score SUCKS, but my debt to income ratio is awesome. And my credit report has a few bumps of late payments, but that does NOT immediately deny me for an "IN HOUSE LOAN"
Today I called 4 credit unions, filled out an app at one. I called 2 banks and walked into a third and filled out an app. Tomorrow I am going to a 2nd Credit union to fill out another app. I was open and upfront about my situation with the property and my credit score and credit history.
Here is the deal with banks. If it is an in house loan, ask if you would be denied for one aspect of the loan application such as your credit score being to low. Here is an answer that I recieved to that question.
The Loan officer said "I would turn down someone who had a 750 Credit score because they showed no ability or knowledge to manage a rental property. I would approve someone with a 600 credit score due to tenants that had caused them distress and they had disclosed all of that up front as to why they had that low score. Because they showed honesty and responsibility."
The biggest risk of all is not taking any.
Hopefully I will have a Loan approval by Tuesday.
Quad City Real Estate Investors Association
Here is the proof of getting a loan to buy a deal with a 585 Credit Score.
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