Very short term loan?

quinn · Joined: 22 Feb 2007 Posts: 3

Hi,
My mum needs a very short term wad of cash to secure a flat sale. She'll be able to get a loan from her brother within a month or so. Where would be a good place to apply, all things considered? Particularly with regard to early repayment, rates if applicable and any other fees that she would incur. I know nothing about loans and had thought they were useless if you didn't want for years, but she is aware she may have to pay lots to get this money. Her credit ratings are probably quite ok.
Thanks for any advice.

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

I would try a local bank

chomper · Joined: 29 Nov 2009 Posts: 2

I am in a similar situation only I need to have a cash offer in order to get the property.

We're considering using a private lender (hard money) to get the cash, pay the points to that lender, and then refinancing within the first month after closing to a 30-year fixed mortgage from a reputable lender.

Anybody familiar with this type of transaction?

Will a bank be willing to allow us to refinance the home so soon after we take possession of it (assuming it meets fanny/freddie requirements, etc.)?

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

Chomper

Are you saying that you have a down payment problem or is it a poor credit problem?

Poor Credit Loan Options

chomper · Joined: 29 Nov 2009 Posts: 2

Thanks for the reply Eric.

I dont have either of those problems. We have great credit and plenty of cash for downpayment, closing, and repairs.

The problem is the bank that owns the property. They are only accepting cash offers and nothing else. They won't even look at our strong offer with conventional financing.

So I'm contemplating (researching) the idea of using a hard money person in order to get that "cash" deal - then immediately refinancing the hard money loan to a 30 year fixed rate mortgage from a reputable lender.

I understand that it will cost me points upfront (maybe 4?) and then closing costs for two deals. Does that make sense, given I strictly perform my due diligence and only agree to terms that allow for no penalty prepayment, etc.?