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Hi,and its great to be here.
I am from the UK but have just returned from a lenghty stay in Florida where I am a mortgage broker and real estate agent.........so if anyone has any questions on Florida real estate and mortgages etc I will be more than happy to help.
1.My question is....is it possible to get a self cert mortgage with 100% financing for a first time home buyer?
2. Failing the above,is it possible to purchase property with 0 down?
Thankyou Steve J. |
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steve,
hi and welcome. i believe it is possible but ill just don't have my finger on the pulse enough to tell you names of mortgage companies.
tom |
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Hi Tom and thanks for your reply.......however I do not think, based on my internet searches that that type of mortgage exists.........I was talking to a mortgage broker today that told me that they are out there but come with a high int rate......I cant find any...
SJ. |
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Hi Steve,
100% self cert mortgages are not available as such - the highest LTV is 90%. However if you are getting a hefty discount on the purchase price your effective LTV could be higher.
cheers
John |
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Hi John.
I just got an email from a mortgage broker who tells me he can do a 95% self cert with Igroup.......no mention of int rates though.....I will check it out and let you guys know.Steve J. |
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Hi.
OK,just went on www.genesispartners.co.uk and looked up Igroup they do have a couple of 95%LTV self cert.
Interest rates are not the worst Ive seen for such a deal.Steve J. |
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quite high but not crazy. are you going for it?
>>>just seen how many posts i have now done on this forum! i need to get a life!<<<
tom |
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Hi Tom.
I am going to check out the Igroup product and probably have a go at doing a deal within the next couple of weeks.
My intention is to buy a property for residential purposes using none of my own money......I will ask the seller to pay all of my costs associated with the loan and legal fees.
Its done in the US.....so why not here?
Look forward to your comments guys.......Steve J. |
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I have just had a mortgage finalised on my residential property and have got a 95% LTV @ 4.59% fixed for 2 years. So the deals are out there.Quite good too!! |
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simon,
good to see you back.
that is a good rate @ 95%. who was it with?
i take it that it wasn't self cert though?
i am currently looking to buy a new place (to live in).
tom |
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Thanks for that Tom.
The mortgage was with First Active. It wasnt self cert no, but I thought it was worth mentioning as its a pretty good deal.
Good luck with your new place.
Simon
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well guys i have been trying to get a self cert nooo accounts (yet) gifted deposit for the house next door but finding such a provider has proved to be harder than finding hens teeth unless someone knows different....
steve |
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OK......This is what I have just discovered through the powers of the internet.
Self cert mortgage with as little as 1%,2%,3%,etc etc down.
Scenario 1.is,If a property is for sale at 100,000 and you make an offer on the property that is accepted for example 95,000 than the buyer can have a mortgage on that property for 95,000 the lender will allow the 5% discounted to be used [in theory] as the down payment and the buyer would need to come up with the remainding 5% at exchange.
Scenario 2. If someone made a succesful offer on the same house for 97,000 the remainding 7% would count as their deposit and the buyer would need to come up with 3% cash.
If you were able to make an offer on a house that was 10% lower than the asking price then the buyer would need 0 deposit.
The above is subject to the property being valued to at least the asking price.
This is a self cert mortgage with rates[I have been told] of about 5%.
will post more when I get it........Monday.
Anyone know how the deal could be made even sweeter for the buyer........heres my input.....what if you couldnt find anyone that would discount their asking price by 10% to enable a 0% down.......any repocussions in having the seller inflate the asking price by 10%[as long as it would appraise]??? what you think guys...Steve J. |
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Hi chaps , forgive my ignorance, but can you use these self cert mortgages for buy to lets? especially the one steve jones mentioned? Matt |
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Hi Matt.
Not sure about buy to let...but I am meeting with a mortgage broker tues and will find out...........I kinda doubt it though.Steve J. |
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Hi steve , i knew it would be a long shot, i am just trying to make the max out my cash,like we all are i guess!
I have been looking into overseas investment and florida sounds good for rentals.Is 100% finance any easier over there and also which areas can you recommend for rentals ?
Dont know whether i have got the balls to have a go over there but no harm in looking into it! Matt
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Not sure on self cert but this company (www.thebuytoletcompany.co.uk) offered me a 100% mortgage for my compnay www.mpginvestments.co.uk using a bridging loan facility to cover the 15% and then refinanced - over all it wasn't too expensive
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Hi Matt.
The deal I posted is with mortgages PLC.......
No 100% financing for foreign residents in Florida,you would need a minimum of 20% down with stated income and accounts etc... and 30% without any documentaion.
They are very big on credit reports in USA and based on what the report says you would aquire a credit score....most foreign residents buying in Florida end up with 30% down to eliminate the need for LOTS of accounts,however 20% is possible.
best of luck.Steve Jones.
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Property prices coming back down slowly.Areas to invest??everyone is trying to get as close to Disney as they can for maximum year round rentals,,,,,but they are constantly building in central Florida and of course everyone wants to rent their property and because of this lots of Florida investorrs are lowering their rents to get someone in to help cover their costs...........best bet is the Gulf coast where there is less competition and you can rent a shoe box in the winter......Jan-April maximum rents.....make sure you check out the areas short term rental requirments...for Gulf coast you need 2 week minimum to capture the Brit summer tourists....rent to the yanks during the winter for big bucks.Steve Jones. |
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Thanks marc ,that is something i have been considering but havn,t got round to it yet.have been thinking of taking bridging finance on something,spending a bit on cosmetics,which should hopefully push the value up for a mortgage. |
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Hi steve, thanks alot for that on florida, i will certainly start looking at that area.Both points you mention about property price and the volume of propertys are things i have wondered about.
Just out of interest what is the attraction for the yanks in winter on the gulf coast? |
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I am a new poster and have just found this amazing network.
I am shortly going to be able to offer through my own private financing the following service and would like to get your thoughts on whether those who are buying property at Below Market Value would be interested in it!
I will soon be able to lend 100% of purchase price for a day, on the basis that you have a suitable mortgage in place for an immediate re-mortgage. You would have to use my solicitor for conveyancing (large firm able to move very quickly) and for the re-mortgage. If you manage to buy at 15%+ discount, it means that you will be able to purchase infinate properties with No Money Down!
I would be charging 1.5% flat fee + conveyance fees for this service.
Please, your thoughts will be very welcome.
Regards,
Guy Fisher.
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Matt......attraction for the yanks in winter on Gulf coast of Florida is that of its great weather[average temps of 75-80 deg F] as opposed to the freezing temps of the north eastern US and of course Canada.
Typical rents for a 1 bedroom apt on Gulf coast during Jan through end of April are approx 150 dollars per night + 10% tax with a 3 night minimum,of course this would be the most basic accomodation however situated close to the beach. |
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Steve, thanks alot for your input you have certainly given me food for thought! |
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Some interesting ideas being made here.
In my experience there are lenders offering some good deals and some clever methods to make them work for you. But rarely without the need to have some money in the bank. I’m told the 95% self cert from igroup has, after the 1 year discounted period, a rate of over 8%, a 5 year tie in and some hefty redemption penalties.
A method that's used if, as discussed, you can source a property at 10% below market value:
The property is worth 100,000 and purchased for 90,000. 9,000 is put down as a 10% deposit on a 'no redemption penalty mortgage' (loan amount = 81,000). On completion the mortgage is then swapped (at no penalty) to an 'instant re-mortgage' deal with another lender for the full value (loan amount = 90,000). Thus freeing up the 9,000 initial outlay. This can be done on a self cert at 5.15% fixed for two years.
The main problem being that you need the 10% capital plus costs, and it will be tied up for 4-6 weeks.
This is also possible on buy-to-let but you'd need 15% off market value. If the discounts can't be achieved you could inflate the prices but the risks are obvious.
Hello to you Steve. From your earlier post - No money down deals at a good rate are hard to find. Were you able to source a lender that would gift a 10% deposit on a self cert mortgage? |
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Guy,
I would be interested in hearing about your deal.
are you doing this with others because I know someone else setting up something almost identical?
Julia |
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Hi guys, great site - dicovered it today.
Am in a similar position to the original poster.
I recently developed a property which I have now sold (touches wood - should complete this month).
I was made redundant a few months back and as such have no income. I will however have cash when this property is sold.
My plan is to buy a house, do a minor renovation on it, let it out and then get a BTL mortgage on it and hopefully take the money back out and build a portfolio this way.
Will my lack of income mean I can't get a mortgage?
I am happy to put down a deposit.
Thanks in advance
Matt |
