610 Credit score, 100% financing... how?

Question

So heres the skinny i make about $34k a year, my FICO is at 610 as of this morning, and i have no money for a down payment so would need 100% financing... I am looking to invest into multi unit properties, the properties i am looking to purchase are 3-4 units and are no more then $125k per building...

Here are my questions... Are there banks that will finance me? and if so where because i am not having any luck finding them...

I would like to start investing and buying a place every 4-6 months or so, is it possible to get into investing into multi unit buildings if you have no money down? Say i have bought my forst building with no money down, will i be able to get financed for a second, thirds, fourth, etc with no money down?

Also does it make sence to start a LLC or some kind of small business and buy the buildings using the business instead of my personal info? what are the advantages/disadvantages?

Thanks!!

Answer 1

Not likely. Non owner occupied investment properties usually require 20% or more down. And that 610 FICO isn't very attractive either.

There are probably "fringe" lenders who will take you on, but the interest rates are going to be VERY high. Do a detailed cash flow analysis on the property and financing and see if it will generate enough $$$ each month to cover the payments and other expenses, i.e. taxes, insurance, utilities, maintenance & repairs, and vacancy costs.

An LLC without a credit history (D&B rating) will need a personal guarantor. Same concept as a cosigner -- and that will be you. Your credit worthiness will decide, not the LLC's, and 610 isn't the territory that investment banks are looking for.

Probably the only realistic way in at this point is to search out properties with assumable mortgages that the owner wants out of for the mortgage balance alone. Most of the time properties such as this are in rough condition and won't generate enough cash flow to sustain themselves -- that's why the owner wants out. But you could get lucky and run into a landlord why just wants out for other reasons -- health, bad tenants, whatever -- and be able to pull a viable deal together.

Answer 2

Right now you are in over your head. Multis in your price range nee a LOT of work. Can you afford that? The best way to generate income is with 4 Units per bldg. or more. More than 4 Units is considered Commercial nad the requirements for Comm. loans are different esp. since you have no experience with rentals. Find a GOOD advisor and pick their brains. Someone who has done this successfully. Not some jerk just guessing.

Answer 3

if you have over a 580 credit score many places will give you 100% financing on a mortgage........credit score is only half the battle.....your monthly debt ratio is the other half. you need to have a monthly debt ratio normally under 50% you only need to use the debt that appears on your credit report. like car loans, other loans, mortgage payments...things like that. add all of those up and if they are less than half of your gross monthly pay you are in business. if you buying investment properties, you probably won't find someone to do 100% financing, maybe 90% is the best you will find......so you may need 10% down.......also even if you did 100% financing, you still need to have money for closing costs which can not be financed.........you can also ask the seller to assist you in paying closing costs which is a huge help.........hope this helps

Answer 4

little know company called NACA - www.naca.com - they will fix your credit and give you debt counseling for free and then set you up a with a good loan and good interest rate - and they offer up to a 100% financing. I've heard about it from other people and they were very happy with it - but it depends on where you live if the program if offered. - check it out! :) Good luck.

Answer 5

sure you can .The interest rates will be in the higher fives and lower sixes .write to me at [e-mail] and i will provide you the detailed information.
Your credit score is good one!!!!!!!

regards,
kish