There is a property in regional QLD i put an offer on. Loan application wasnt approved because property wasnt suitable for LMI.
How can I word a new offer to the vendor asking if they will leave 10% in the deal? That way we will have 20% deposit and wont need LMI. How then do I make the offer reasonable for vendor? Do i say i will pay it back in 6 months/1 year with a certain amount of interest attached?
has anyone done a deal like this? That could help me with ideas in what i offer in return for them lending us 10% to buy their place?
Thanks
Spoodle
Have done 1 or 2 deals like this.
Firstly have you checked with your broker and asked him to try another MI.
Unless the property is specialised or in an unacceptable post code I am unsure as to why it was declined.
If this does not work then i would suggest that you offer the Vendor say simple interest at say 7% PA over say a 2/3 year term.
That way it is easy to monitor and calculate but bearing in mind you would need to make provision for making repayment of the capital at the end of the term.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Hi Soodle,
If there have been at least 3 sales in the last 6 months in the town, and it in a town (not farmland or acreage) you can get 90% LVR. I’m more than happy to assist you with this if you are interested.
Regards
Alistairhi sP00dLe
I have done as you ask I get the contract to reflect the valuation price.then get a 80% lend on that value.then the owners vendor finace the difference between your agreed price and the lenders amount (remember that your agreed price is different then the valuation price)
and the rate to the vendor is the same as the lenders interest rate.
simple really
Maybe write down if it dosen’t sink in first time
this system doesnt get you into LMI arae
Also if the valuation comes in as you wish then it works out as near to a 100% lend as possible.
The vendor will wish security for there money, a caveat on the property after the lend has gone thru ( usually 4 days).
they then have security.
pm me if you wish.here to help
There are two major Mortgage insurers in Aust.-
GE Mg’t Insurance & PMI group (http://www.pmigroup.com.au).You can check the website of PMI and find out wether they will do you area by checking the Location Wizard. Usually if they can’t do it GE can. Also St George have their own mortgage insurace.
Hellman
Hellman
There actually 3 + St George now.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Hi Richard
Isn’t there a 4th one also? PMI, GE, Mobius and another – I think firstmac were using them – can’t remember who.
Terryw
Discover Home Loans
Parramatta
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Terry
My apolgies you are as usual bang on.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Still can’t remember the name of that 4th one, but to check what Genworth will approve for by location go to:
http://www.genworth.com.au/default.aspx?item=access&id=loc_guide_auTerryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry & Richard,
There is only Three mortgage insurers PMI GE and TMIC.
Mobius insure through TMIC.Spoodle, have you tried ANZ,
Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
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http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Steven
Was aware that mobius used TMIC but was sure that Tonto had a separate MI. So thats 3 + STG of course.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Thanks for all the ideas.
Yes I have tried ANZ..they rejected the property for LMI as well
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