Getting approved for a Mortgage with no money down? New York State
There is an old mansion that I want to turn into a B&B / outdoor, summer restaurant. It is a single family, residential home that I want to purchase with a Mortgage and make my personal residence as well. After talking to the zoning board about it, they told me my chances are good on getting the property rezoned to commercial use. I'm not going to tell the bank about my future plans, just that I want to put money into the home and restore it. Possibly, putting it back on the market in hopes of reselling the property for more. I don't want the bank to turn my loan into a higher interest business loan, just because I opened my mouth, nor do I have the upfront cash they would want to see before I started the business, that would be taken care of by a silent partner that I already have. The home is on the market for $600,000 and is assessed at $500,000. I think, and by "think", I mean "Hope", the home owner will go down to $350,000 because they can no longer afford the taxes and upkeep. I want a loan for $350,000, no money down, hoping my negotiation skills will take care of the rest. (But I haven't talked to a banker yet because I want to up my credit score a bit more, so I don't know what the rules are there?)I make $50,000 as year as a salary employee, My credit score is 720, My debit consist of 21,000 for Truck, 3,500 for college, 6,000 credit card! monthly debit payments are $735. What are my chances of the bank saying yes to a 350,000 loan, so I can actually make an offer on the home and see if this future plan, is even possible? I could have a family member co-sign who has all assets and perfect credit. (would prefer NOT to) Would it make a big difference in interest rate and approval with an established co-signer?PS: I'm 24 and this is my first home. by JoeHub_298_618 from charlotte, North Carolina. Sep 13th 2012
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Ya... No!!!!.. First of all, what you're talking about is called loan fraud, and it's a federal offense.. Since you clearly defined your "Intent" and how you want to hide this information from the bank.. 2nd of all, you don't make anywhere near enough income to qualify for a $350K Loan, and 3rd.. Unless you have VA benefits, or the home is in a qualified USDA area, you won't find a zero down mortgage... SBA allows you to purchase a property and improve the property for your business, however you have to have a solid business plan, and you need to sell them on the idea that you are qualified to run it.. Plus you would need something down.. as much as 20%... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions
Purchasing a property and obtaining a mortgage for the property as a primary residence with the actualk intent on turning it into a b and b is called fraud. Aside from that, you have no chance of receiving 100% financing on the property unless you are a veteran or you get a USDA loan. I would assume that a mansion in NY will not be eligible for USDA financing. There are other more legitimate option for this. If you would like to discuss email me at PBotros@OmegaLoans.net
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Keep up the dream, but it isn't going to work out the way you want. You are going to have to put some skin in the game.
I apologize for raising your blood pressure over there Trav. I'm sure you're sick of all the idiotic questions that your superior knowledge doesn't have time for. I'm a business major, not a loan specialist and thats why I am asking the questions...To learn! I was under the impression that after you received the loan and purchased the property, you could do whatever you wanted. (Obviously not, I will be sure to change my plan)For that kind of money the home will obviously be my primary residence but, I would need the home to also generate revenue so I can afford it. (Hence the B&B / Outdoor Venue) A property lease on any other business we looked into was going to cost at least 4,000 a month. Therefore, I figured a "home business" would be more feasible. (one loan, one bill, one property) I'm not worried about the house only being in my name, if I have to have a co-signer I will. I just want a home that will also make me money and pay my taxes. My father owns a few apartment buildings and he is thinking about selling one to provide start up cash for the business, or now the down payment after hearing your responses. I didn't know the laws with converting your home into a business besides the fact that I needed to go threw zoning. Haha i'm sure thousands of people have thought of ideas like this, but after a few harsh comments, most of them probably get upset, lock themselves in a dark closet and eat nothing but chocolate for a few days...I hate chocolate! I on the other hand, listen to your feedback and figure out another way to make it work, and believe me I will. If not with this property, I'll make it happen with another one.My truck is for sale and with the money it's worth will also cover my credit card debit. I know now I need a SBA Loan not a mortgage. Even though the house is assessed for 150,000 more than the loan I'm asking for, you still think I would need more "skin" Joe?
Hello,It may not be possible to get your loan from a bank,but it is possible to get it from us. We finance business loans with great speed and with wonderful interest rates.... Contact us now and get the money you need within 24 hours..Stackfinance@gmail.com We hope to hear from you soon!
dont be discouraged about not getting a loan for $350.000 with no money down.....There is one way I am sure you can do it.....each night before you go to sleap think hard about it and you will get to dream about living there but please dont dream up the handcuff for insurance fraud.....good luck..
Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions
First of all, you can't get a mortgage for a persoal owner occ residence with intent to convert it into a business. Eventually your mortgage co. will know it isn't a personal home any longer because of the public tax record once it gets rezoned, then they will call your note due and sue you for fraud. Second of all, there is no zero down loans for purchases of that size. And finally, you can't use another persons credit and asset profile to get a mortgage in your name, you must qualify on your own merrit. You evidently think you are the first person to come up with ideas like these...you aren't. You're a dope and I sincerely hope you try to go through with this brilliant plan, get caught and end up in the clink.
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