Mortgage folks
 

I'm trying to write offer letters myself for some property. One is a house, one is land. I want to make one of the contingencies based on getting a loan for <X%. They will be no doc loans. Anyone know what the "going interest rate" is for a no doc is on houses and property? There's a house FSBO here that is offering 6.5% 100% financing for a no doc loan, so I was thinking about putting <7% on the house.

I know when I called my mortgage company a few years ago, land interest was higher than the house.

I have a mortgage guy I can call but I don't want to go through him and the bank lady is already gone :(

bump for the mortgage people :)

Bumping again - this board moves too fast!

if you put a lot down, it won't lower the interest rate enough to matter. I'd take the 100% financing @ 6.5% if you like the proprty or can rent it quick.

The property with the 6.5% was just another one I saw in my neighborhood - having to do bank financing for mine.

I'm trying to put as little down as possible for now and keep cash liquid. Going to school, buying and selling property and having freesites I haven't touched in a bit just pays the bills - I like having my emergency fund for now :)

Bumpity bump - where are all you guys who usually hit the RE threads like crazy? LOL :)

Thanks :) I have the letter written - just waiting to find out what the average is for interest. :helpme

Bumping again. Got the paperwork from the mortgage guy and they want 7.9% for a bank statement mortgage? Are rates going that high or am I being screwed over? The rates drop a percent after 5 years and another percent after 10 but I don't plan on having the mortgage that long.

7.9 isnt bad
Looks like hes making a 1/4 plus yield spread on you,
6.5% on a no doc.. jump on it if you're serious about the property, dont do 100% fin put something down ontop of closing costs so you have some equity.

and yes land loans will get an interest rate bump over developed properties

I'm serious about the property and already have a contract in on it. I'm refinancing my house at 80% LTV at this 7.9 so will be paying for the additional house basically in cash. That way if worse comes to worse I can sell my house and move into the vacation rental ;) Right now my interest is 6.875 but that was a full doc.

Thanks for the info :) I've been buying land but paying cash with no refinancing of my house needed. This will be the first time I've had two "buildings" owned at the first time. Need a mountain vacation place to rent cheap? :winkwink: