neg arm and a second

[myloan]

i need to place a loan 100% c/o refi with a neg arm first. 677 fico self employed o/o condo in ca. cashout 80k. or a bank that allows a second on a neg arm to close consecutively. siva or 12 mnth bnkstmnts

[Troy]

I guess I need to ask....

Why would you want to stick a borrower in a 100% c/o refi neg am first?

What happens 1 year down the road when they've only been making the minimum payments and now they are upside down because the mortgage his higher then the condo is worth?

I'm sorry, my friend, but this sounds like a bad deal in the making.

If you have a truly financially intelligent answer, then I might attempt to find someone to do this. Otherwise, I simply believe that this is an irresponsible deal that shouldn't be attempted.

troy

[myloan]

yes i understand your concern however my client is planning on investing in other properties and wants to be able to send a very small minimul every three to four months to help keep his cash flow. i have explained this to him and yet he still finds it the best option for him at this time. Let me know if you know of any banks for this client



thanks

[Troy]

Guidelines on the option arms have been changing a lot recently.

I'll take a look at guidelines for the programs that I think will work on Monday (I'm a little busy with family throughout the holiday weekend.) I don't want to toss out lenders the worked 6 months ago, and lead you on a wild goose chase.

troy

[Troy]

Well, PMAC is offering a 100% cltv option arm. I just saw the email sitting in my inbox and decided to pass on the word. However, it says it's purchase only.

My suggestion is to do an option arm to 80% or whatever, and then run a stand alone HELOC behind it. They shouldn't have to close concurrently. In fact, I wouldn't recommend trying it. Your borrower will just have to wait for the HELOC to close before getting cashout.

You should call the standalone places (I think there's another thread in here about stand alones) to make sure they'll go to 100% behind an option arm. Otherwise the 80% c/o refi for the condo should be a piece of cake.

Let me know if you still have questions.

troy