Can I get Financing with excellent credit?

Maybe the transactional funding will be okay, but don't think I can get a traditional bank loan. Maybe I don't need to right now with assigning, but what about in the future?

Hi Tammy wouldnt know unless you try, nothing gain if nothing tryed, Jim

Tammy Im sure the bank wants some kind of income when applying for a loan/ mortgage. If you do wholesales then I don't see why that wouldnt count as income?

Banks will require you to have a job where the income can be proven and you usually have to show that you have been on that job for two years.

Karen

Hi all, I have been on my job for 14 yrs and have received loans from my credit union, but now I recently went to refi on my current loan they denied me because of my score at 610. I am ahead on my pymts and never late. Any suggestions to get a small loan w/collateral using my 1998 Mercedes Bendz.

I also notice that credit unions do not report on time pymts to boost your score but wii report late pymts to scar your score. HELP!

banks will ask you to prove some kind of income even with a high credit score, pay stubs, last of your tax returns, etc. Use transactional funding if you are wholesaling. If your plans are to buy and hold, try to find OPM or OPI (other peoples IRA) to lend you money to fund your properties. There are also hard money lenders out there, but their interest rate is very high, +16% rate and balloon payment within few months.

yes I thought it would require a job for traditional bank funding. So it is transactional funding or OPM and the like. Mike also suggested I go get an unsecured loan to build my credit with a particular institution. So I see there are many options. Never say never! Think outside the box!

Yes. Not having a job has a few pitfalls most people do not write or teach about. The biggest one affecting REI is that no brick and mortar bank will give you the time of day. Credit unions? Even more so. Your assets and liquidity are usually ignored if applying in your personal name (instead of business credit you've established). When it comes to credit, your score number simply is not enough. Not after the housing and lending bubbles and disasters. Liar loans are over. Zero income loans are extinct for all but the super-rich. If you promise to secure the deal with collateral, it better be worth more than the deal you want financing for. Not trying to be negative but the saying, "Banks only lend money to people who don't need it." completely applies if you don't have a payroll employer on your credit report. Anyone who doesn't believe me? Find a traditional lender who will not laugh in your face without a job... Go ahead, I'll wait.

Thousands of "non-bank lenders" of all types, who swear up and down in their ads "no credit or income required" still need your social # so they can take the deal from you in court if you default or breach. But when you give up your social #, and sign your app, they can (and WILL) run your credit report. If they see you're not working, they might decide against working with you (they say it's all about the deal equity, not the applicant, right?). Truth is, no matter what a NBL says, they can deny you for any reason and not have to tell you why. They are NOT bound by the FDIC or the Fair Credit Lending Act, which both require anyone denied credit must get written notice of why within 30 days of denial.

It's depressing, I know. It seems like you have to have a job no matter how successful your business is. "So I have to have a job AND a business? What's the point of starting a business, then?" I guess you could always hire yourself under your business, but then you have to set up a payroll, deduct and pay taxes on yourself... But, there's still a chance they'll simply consider you "self-employed," which makes banks want to know ALOT more about you than your everyday mortgage applicant. Private lenders on a 1-on-1 basis work the best for the least amount of hassle. TF's would probably come in a close 2nd, depending on who you use.

The only silver linings are that you can partner with and/or learn something new from anyone. Every town in America has at least 1 person with ALOT more money than you, who would be happy to make more working with you. All any of us have to do is find that person and meet them. Think outside the box? No, the box says "no" on it - BURN THE BOX!

i know your situation !! If you are creative and can use a credit card wisely i would myself use this to BUILD my credit and for deals.I did do this with multiple cards but only reccomend it if you are good with shuffling $$$

i also would run an ad for a 3 bdrm 2 bth house for 5000 down payment and 600 per mnth ...YOU CAN OWN THIS PROPERTY TODAY.....HURRY THIS MAY GO THIS WEEK !!!!!518-XXX-XXX JAY
then i would wait for the phone to ring and believe me it wont take long !!!
this will be the beginning of your land contract or contract for deed BUYERS LIST

when they calll ask what they have down and what they can afford for a mnthly pymt .KEEP ALL CALLERS INFO including email,phone,skype id .
you then go find a deal to FIT THEM and make YOU $$$ in the middle.....then you SANDWICH IT . thats all a sandwich is ...is when you negotiate a deal for example to buy from a MOTIVATED SELLER FOR 1000 DOWN AND 300 per mnth......on a lease opt or a land contract or contract for deed.......and you sell or sandwich to YOUR BUYER for 5000 down and 600 per mnth
you take YOUR BUYERS 5K and pay YOUR SELLER 1000 thus POCKET 4K ......then when YOUR BUYER sends you 600 per mnth.....YOU send YOUR SELLER 300 thus POCKETING 300 PER MNTH ......this is how you can make $$$$ with no money and using OPM !!!!

keep ALL info from all callers so u can FIT them for other deals you negotiate or CAN PASS OFF TO OTHER INVESTORS for a fee for THEIR DEALS .IN one day you can build a leaseopt or land contract buyers list and then use this list to give or make a deal with OTHER INVESTORS or create your OWN DEALS to pass on to these buyers !!!
good luck tammy ....this works !!!
go gettum !!!

will always be looking for income; and self employed income of 2 years. While stated income loans are coming back slowly in some states, the programs are limited and do require income.

You can use hard or private money lenders (There is a difference, despite the term usually being interchanged, TRUE private money lenders are different than hard money!) (There is an extensive thread here about that: http://www.deangraziosi.com/real-estate-forums/financing-and-credit/3627... ) Even private money bank (I have a link in my signature as I'm an affiliate) is more on HARD money side because what they do is act in the middle, find a real PRIVATE money lender for your deal, but then they add their fees and interest to the private money.

Anyhow, check out 'stated income' loans as well as 'no ratio' loans. But, they'll still want you to put something down as 'income'. This is why I have to have my husband on all our loans as he has an actual J O B.

But, there is ANOTHER way around that, and that is with PORTFOLIO lenders. Portfolio lenders are the small banks in your community that do NOT sell their loans to Fannie, Freddie or other banks and they keep them in house. To work with them, you will need good financials, but not necessarily a J O B. They will lend against your LLC (almost always with a personal guarantee though). There are many threads here about portfolio lenders, and even if you CAN'T use them now, its important to build a relationship with them early on.

ONE more thing you could do is JV partnership with another investor. Hope this helps a little!

Hi ,excellent comments above. Adding to that...form a JV with a partner who has a job and can document their income. Certainly you have to share the wealth but you also can get deals done. There are plenty of JV's where one signs for a loan and another doesn't. Check with your lender on what % ownerships require a signature and what % does not.