DFW REI Club

 Dallas/Fort Worth Real Estate Investor Club

Financing

  • 12 Apr 2019 11:38 AM
    Message # 7279640

    So this isn't an investment question, but I can think of no better group of people to answer it.  My mother is inheriting some money, and has her heart set on a house.  The problem is the seller is looking to close fast, and my mother won't receive her money for a month or 2.  Is there a financing option that would allow her to purchase the house, and pay off a portion of the mortgage later?  I was thinking something like 2 mortgages, one standard mortgage and one to be paid off when the inheritance is recieved.


    If anyone can point us in the right direction, I'd greatly appreciate it.

  • 15 Apr 2019 8:57 AM
    Reply # 7282966 on 7279640

    Michael, I think the correct way to answer here is based on how "fast" the seller needs to close.  Does "fast" = 45 days?  30 days?  3 days?  If they can close in 30 days then a normal mortgage can work.  If your mother is planning to occupy the property there are 3.5% down programs and perhaps she can qualify for some "Downpayment Assistance Programs"?  

    Now, if the seller needs to sell the property in 3-10 days then there aren't many options for that.  Some people might think that Hard Money (which can close very fast) could work but if she is planning to occupy the property then Hard Money can't be used.

    There is a lot to consider here so feel free to either reach out to me for specifics or just post again here with any other questions.  Thanks!

  • 15 Apr 2019 9:25 AM
    Reply # 7283058 on 7282966
    Andrew Postell wrote:

    Some people might think that Hard Money (which can close very fast) could work but if she is planning to occupy the property then Hard Money can't be used.

    As long as she pays off the hard money loan before she moves in the house, it can work.  It would be an expensive option but feasible.

      Neil Aggarwal
      Property Financing, LLC

  • 15 Apr 2019 9:31 AM
    Reply # 7283064 on 7279640
    Michael Mixon wrote:

    I was thinking something like 2 mortgages, one standard mortgage and one to be paid off when the inheritance is recieved.

    Some lenders can make two loans if they have both of them. Most lenders will not take a second lien with someone else holding the first.

    Let's go back to Andrew's question.  How quickly does she need to close?

    Thanks,
      Neil Aggarwal
      Property Financing, LLC


Contact Us  |  Advertise With Us

Copyright © 2008-2019, Nubys Group, LLC

Powered by Wild Apricot Membership Software