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What are typically rates, what are advantage/disadvantages to doing this as an investor.  Where do you find them?
  • November 08 2013 - Raleigh
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Answers (3)

Typical rates can be between anywhere from 8%-13%. Although lenders like myself have a product where you do not have to verify income, and with a 650 FICO score or better, the rate can be brought in at 7%. You can expect these loans to also come with points. The advantage of these loans is that the products are much more flexible than a traditional loan. The disadvantage is that it usually requires 30% down and the costs are a little bit higher. I would recommend that you speak with a lender like myself that would be glad to help you get started on this type of loan. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • November 08 2013
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Advantages are that you can get the deal done if dealing with a difficult lending scenario.  Disadvantages are the rates and will typically require 40-50% down(at least in our area).  Rates are usually around 10-18%.  Contact your mortgage person and see if he/she has a recommendation.

Best,

Bryan
  • November 08 2013
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Profile picture for wetdawgs
Advantage:  may lend when regular lenders won't touch the issue with a ten foot pole.

Disadvantages:
 very high down payment required (30 to 50% pretty typical)
 very high interest rates (plan on 2 to 4x market rates).


  • November 08 2013
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