Here's the scoop. I found a great SFR in north Aurora. Asking price is 85k. Put in an offer for 89,500k. The house on a normal market is worth 135k. Its a 3/1 that is move in ready right now. New carpet, hardwood floors, double pane windows etc. We have the money for 15% down. Rents are $1000/mo with a vacancy rate below 6% for the area. The numbers look good from my end. This house is a rare find. I still haven't had my bid excepted and found out about the credit issue after the bid. I'll be finding out today if my offer won. I'm just trying be a bit more prepared.
My problem is this. Lender pulled my credit and it shows zero. When I pulled my credit last month it showed 720. My last debt was paid off over 2 years ago. Apparently what the consumer pulls and what the lender sees are two different things. Basically I have no credit history. My mistake.
I see 3-4 current options, but I'm looking for some ideas.
-Hard money loan to buy the house, when I get my credit history active again, refinance into a traditional loan. I'm purchasing my own home at the same time and my credit file will be active at that point. Downsides:I have no idea what my credit will reactivate at if its "starting clean". I have no bad credit items, just zero credit items. Also LTV would not be 70% like some Hard money lenders want. Yes LTV on the prop is 67%, but the LTV on the purchase price for us would be 85%.
-2nd choice. Attempt to go through a couple credit cards and lines of credit fulfill the full amount. Currently have 30k line of credit available. I will need to get a few more. Downside: This method is tricky and still relies on getting that loan through refinance once my credit is regained.
-3rd choice. Go through some investors I work with and basically split the property. This will make the property basically split among 4 people. and 2 entities. Downside: This doesn't quite fit into my plan as nicely and will make payoff harder down the road.
-4th option. There are already people lined up after me that would offer $500-$1500 finders fee. Downside: I don't get into the prop. but turn it over to someone else.
So I'm weighing options here, but I'm looking for some input in case I'm missing some ideas.
My problem is this. Lender pulled my credit and it shows zero. When I pulled my credit last month it showed 720. My last debt was paid off over 2 years ago. Apparently what the consumer pulls and what the lender sees are two different things. Basically I have no credit history. My mistake.
I see 3-4 current options, but I'm looking for some ideas.
-Hard money loan to buy the house, when I get my credit history active again, refinance into a traditional loan. I'm purchasing my own home at the same time and my credit file will be active at that point. Downsides:I have no idea what my credit will reactivate at if its "starting clean". I have no bad credit items, just zero credit items. Also LTV would not be 70% like some Hard money lenders want. Yes LTV on the prop is 67%, but the LTV on the purchase price for us would be 85%.
-2nd choice. Attempt to go through a couple credit cards and lines of credit fulfill the full amount. Currently have 30k line of credit available. I will need to get a few more. Downside: This method is tricky and still relies on getting that loan through refinance once my credit is regained.
-3rd choice. Go through some investors I work with and basically split the property. This will make the property basically split among 4 people. and 2 entities. Downside: This doesn't quite fit into my plan as nicely and will make payoff harder down the road.
-4th option. There are already people lined up after me that would offer $500-$1500 finders fee. Downside: I don't get into the prop. but turn it over to someone else.
So I'm weighing options here, but I'm looking for some input in case I'm missing some ideas.
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Xuamfp'v ci epz gap og ov xetp'v e djemmiphi.
