If you’re in Mortgage Trouble – Get Loan Modification Help!
Zero Down Mortgage Update – Nehemiah Program Gone.
Vendor Takeback Mortgages….. Again….
This video looks at vendor take back mortgages and explains why they don’t usually work in Canada
Hi, everyone, Rowan Smith with the Mortgage Centre. I want to talk today about vendor takeback mortgages. I’m getting a lot more inquiries no them, and there’s a fundamental misunderstanding out there about how they apply and whether or not you can really use them.
A lot of the no-money-down programs, Carlton Sheets and all these other guys that are out there, have been using vendor takeback mortgages. Those programs are predominantly American. Now the technique does work here, but it’s not as simple as people think.
What they’ll often say to me is, “Rowan, I want to buy a $400, 000 house. I don’t have the 5% down, so I want to take a vendor takeback for the 5%.” What that means is that the seller is loaning you the 5% down payment.
Sounds good. The only problem is, it’s not allowed. You can’t do it under Canadian banking systems, because to do 5% down, the person who’s got the first mortgage either has to get CMHC, Genworth, or Canada Guarantee in mortgage insurance, most commonly CMHC.
CMHC is not going to allow you to borrow 5% behind their 95% financing. Part of it’s just simple risk. Knowing that you have absolutely no money in the deal and have nothing to lose if you walk away doesn’t give them a lot of security that you’re going to make your payments.
But secondly, you end up borrowing more than the purchase price. And the reason is, when you pay, put 5% down, you’re going to be looking at a mortgage insurance premium through CMHC for Genworth or Canada Guarantee of anywhere between 2.75% and 3.35%, depending on what program you buy through.
So if you’re looking at 95% financing plus the additional funds for the premium, you’re up at 98% financing. Now you’re going to add your 5% that you’re getting from the vendor. So you’re up over 100% of financing. They’re simply not going to allow that.
And while the math may make good sense, or it may make sense to your realtor or advisor why you can do this, it’s realistically not going to happen in Canadian real estate. I’ve seen too many applications where people have tried to do a vendor takeback, and it’s really considered a dirty word in the industry at this point.
So if you’re thinking of a vendor takeback, the only time you can really do it are on commercial transactions or when you already have a very sizable chunk of money from a percentage standpoint, 20%-plus for example, and are looking to maybe top that up by borrowing a bit back from the vendor.
There are number of ways we can structure this, and I can help you do that. If you have any questions on vendor takebacks, please call me with your situation, let me go through it with you, and we’ll see if we can make it work.
For the Mortgage Centre, I’m Rowan Smith.
Duration : 0:2:32
Introduction to Balance Sheets
Using a home purchase to illustrate assets, liabilities and owner’s equity.
Duration : 0:9:54
PART1 – No Money Down Scaremongerers, Your Time Is Up!!!
http://www.rapidpropertyinvestment.com In PART 1 of this 3 part documentary Phil Martin clarifies why some closed minded landlords critiscise no money down finance systems and he reveals the truth behind these logical ways to buy property. Phil goes on to explain the problems that you will encounter if you do not use creative finance when you buy Below Market Value.
Duration : 0:6:45
i need a mortgage loan but we dont have good credit and no money to put down?
our bankruptcy has been paid out aver a yr now .does anyone know who we can call on
Helo There,
You are not out of options!!!
It is definitely a positive for you that you are out of bankruptcy for a year now…
Are you looking to purchase a house, or refinance a current mortgage loan?
Either way im sure i can help…
The thing for all that are reading this posting to remember is that ALL BANKS have different guidelines in which they lend out money…
Your typical Big Bank that you do checking and savings through, (bank of amerrica, chase, national city, wells fargo, washinton mutual, etc.) Are what you calkl CONFORMING LENDERS…
These lender sONLY lend to people with a 640 credit score or above… Most people go to them first because they have checking through them…They get denied, and think that no one will approve them…
What alot of people out there fdont realize is that there are lenders out there that SPECIALIZE in low credit borrowers…These lenders are called NON CONFORMING, or SUB-PRIME lenders…
I myself work with Providential Bancorp.. We are a nationwide mortgage lender that specializes in your below average credit customers, high LTV (100% financing), bankruptcy’s and foreclosures in the past, etc…
What you need to do is have someone such as myself take a look at your situation, and give you an analisys… From there if you like what is offered we can mover forward… If it doesnt work fo ryou, you arent obligarted to a thing…
I want to be clear that this is not meant to be a sales pitch… I have been helping people on this site for wuite soem time both buying houses and refinancing existing mortgages to lower rates, payments, pay off debt, etc..
I would be happy to do the same for you and at least let you know what you qualify for…
Good Luck!
Jason Fry
Providential Bancorp
312-264-6448
jasonf@providential.com
Part 1 of 2, Can you Get a Buy to Let Mortgage? Part 1 of 2,
Part 1 of 2, Can you Get a Buy to Let Mortgage and Should You?
Duration : 0:6:22
Part 2 of 2, Can you Get a Buy to Let Mortgage and Should You?
Part 2 of 2, Can you Get a Buy to Let Mortgage and Should You?
In this pair of videos Phil Martin explains the basic criteria for Buy To Let mortgages in Late 2010.
I also shares a couple of little known tips for successful DIPS (Decision in Principle) from lenders.
I hope it is helpful 
)
Duration : 0:6:23
No Money Down – the definitive answers from mortgage broker Lisa Orme …
In this interview, Vanessa talks to property investor and mortgage broker Lisa Orme about so-callled “No Money Down” deals (using finance). Many novice investors are tempted into getting into property investment believing that there are such mechanisms as 100% financing and “gifted deposits”. In her capacity as an experienced mortgage broker, Lisa Orme is ideally placed to dispel some of the myths and confusion surrounding NMD and help people understand the consequences of getting involved in creative financing.
You can contact Lisa via www.keys-mortgages.com or on Twitter @lisaorme .
Lisa is a CEMAP qualified and fully FSA regulated broker.
Further reading and opinion on the subject of NMD deals including links to stories of people who have been imprisoned and fined for mortgage fraud:
http://propertytribes.ning.com/forum/topics/mortgage-fraud-more-popular
http://propertytribes.ning.com/forum/topics/top-ten-reasons-why-you-will
http://propertytribes.ning.com/forum/topics/im-confused-about-ready-made
http://propertytribes.ning.com/forum/topics/bmv-deal-sellers-pros-and
Duration : 0:9:35
poor credit mortgages, no money down, first time purchaser?
I am married. My husband just put my name ofn the deed…not the mortgage. I want to buy the house next door, and then expand it into one home. It is a two bedroom row in lower north Philadelphia. It has been on the market before. Now it is all the way down to 34,900. I have got my debt down to 1,749 now. We have the income and all, its just the scores. Once I pay this this last amount off, they say the score still won’t go up for a minute, and we want the house before it is gone. So far we are the only one who is interested, but for how long? Will anybody consider the fact that all the stuff in the credit report is paid off? I have never had a mortgage or owned a home. My husband said he is willing to refinance or whatever on his mortgage, or should I get a second mortgage under my name?
Your best bet is to improve your credit scores as quickly as possible. Why is your credit poor? Are there outstanding collections or anything that continues to draw your scores down? Start with pulling your credit (www.annualcreditreport.com) and be certain that everything is correct, accurate and complete. Any negatives can be disputed, if they can’t verify within 30 days they need to remove the items and that will give you an immediate boost to your credit scores. If there are legitimate debts or collections then get them paid off or settled as quickly as possible. If you are settling debts then negotiate for a lower payoff and have the company agree in writing to remove the negative from your report as soon as you pay them off. Don’t pay them anything until thyou get the agreement in writing.
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