Talking about how to refinance your land contract even if you don’t necessarily qualify for a traditional mortgage.
Happy to show you how we can do it with a portfolio loan.
I’ve been getting calls from folks who have been looking to get away from their land contract, basically refinancing out a land contract. Unfortunately these are individuals who may not have all their ducks in a row yet in order to be able to get approved for FHA or conventional mortgage.
So we look at doing it on a portfolio loan. In this case we look at every situation individually for what it is. So we don’t just look at your credit score and say not sorry or we don’t look at the fact that you’ve only been on the job for 18 months and say “oh no sorry we can do it”.
We try to look at the whole picture and take a common sense approach to it.
A few tips on getting out of a land contract:
- Try to dig up the original copy of the land contract. Hopefully you have recorded but if you don’t, that should be okay we should be able to figure it out and at least get it recorded as soon as possible.
- Make sure that you have all tax returns, pay stub, W-2, bank statements. You still want all your ducks in a row.
- Ideally you’ll need to have some equity in the house. You don’t need to have fifty percent equity in order to refinance your land contract like some other portfolio lenders. Mainly were looking for at least 10 percent equity. Ideally want twenty percent equity in the house. So if you owe $80,000 hopefully it will appraise for at least $100,000.
Portfolio loans are great opportunity for folks with either little credit history or unique income situation, but mainly want to make sure there’s equity.
More on portfolio loans here.
Adam Lesner | Mortgage Loan Officer | NMLS 198818
Mackinac Savings Bank NMLS 401686 | Main offices in Michigan, Massachusetts, and Florida. Also offering financing in most states across the US including (but not limited to) Georgia, North Carolina, South Carolina, Alabama, Arizona, California, Colorado, Delaware, Washington DC, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Minnesota, Ohio, Oregon, Tennessee, Virginia, Wisconsin.