How crazy is this?

Sissy97 · Joined: 20 Oct 2007 Posts: 3

OK, so here it is. I hope no professional on this site will think badly of me by the insanity of this post. If so, my apologies in advance.

We want a loan on our equity we have built over the past 12 years. We have no mortgage, and lots of equity.

We have a loan officer pull my credit. 635,647,649. Stated income because we are self-employed. Not trying to deceive anyone or lie, just not able to really document.

We are told by the loan officer that we need an appraisal. Believe this, have no appraisers within 150 miles one way. No comps within the last 1-2 years and then none of those are even close to the same type of property.

What is a person to do? Some say that lenders can do a drive-by to verify the property. Why can't we have some alternatives? I know this sounds flaky, but we are the kind who establish those wonderful places you go to eat and drink and relax in all those out of the way places. We live in small towns, make wonderful small businesses that people go to who have nowhere to find peace, quiet and beauty where they are. People like us need loans too. We have collateral, half decent credit, lots of assets and need to do roof repairs, pay debts, get through the slow times, and want to take a vacation too, once in awhile. Can anyone help people like us? Just how crazy is this anyway? By the way, we're really nice too! Please forgive me if I seem nutty. Really just frustrated. Thanks for your time and if anyone has any great ideas, we will welcome them.

Sincerely,
Sissy

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

How much are you trying to cash out? For what purpose?

The appraisal thing could be an issue, but it's not *always* required. The lower your percentage of value and the more stable your market is, the less likely you'll have to have one. I would pretty much expect you will though, and it's just going to cost a few bucks to make it happen.

Stated income with those credit scores is going to cost you a high rate though.

Sissy97 · Joined: 20 Oct 2007 Posts: 3

Thanks for your reply. We are looking to do some improvements before the busy season starts, and pay off some debt (very little). Our debt to income ratio is practically nothing aside from living expenses. But, our roof need some work and we need to spend some money on preparation for the busy season which starts around April. Business has increased in our area, so if we want to make more we have to spend some. We also have an opportunity to turn a $12.000 project into $65,000.

We didn't have any sales of properties in our area at all until about 2-3 years ago when the market went nuts due to minerals in our area. So, the market is better than it has been in many years. We were hoping to cash out the majority of our equity, since we are in our early 50s and don't have the next 30-40 years to build our future we would like to take advantage of this while we can still do the work ourselves. Long winded aren't I? So, we are hoping for around 80-100k.

Anyway, we just want to get our equity and jump on the opportunity to expand our income through our business and take advantage of this opportunity to make a profit on this other deal.

Thanks for your time. I know you didn't ask for a book.

Sincerely,
Sissy

jaredevenson · Joined: 17 Oct 2007 Posts: 27 Location: Spokane Valley, Wa

sounds like something i'd go to my hometown, small town bank and see what they've got. usually thats your best option, whereabouts are you at?

chow · Posted: Mon Oct 22, 2007 10:07 pm Post subject:

Yes, where are you? I would think USDA or Farm Credit services would be a program for you. Both specialize in RURAL properties. Most small town/county banks know of them.

www.usda.gov

http://e-farmcredit.com/

I'm kind of partial to those "Farm Credit" people since they are a big sponsor of the FFA who makes it's home here..... :wink: