So: does anybody out there know anybody who can help me locate a
lender who will finance a co-op in California? More specifically, who
will finance a co-op in California for someone whose credit is, shall
we say, imperfect? (Small business ownership tends to be tough on the
credit score.)
I would love to pass along help to this person if possible. 🙂 Any ideas?
Hard, but possible
Your friend has a few points against him/her already but you can probably get a loan.
First, you will need a sizable down payment. For each step away from a conventional loan, you’ll pay a bit more in interest rate. Please don’t forget to factor in the extra expense of insurance that a co-op would require. There are what’s called “sub-standard” companies who offer loans. Their money is just as good, but they often cost more one way or another because they take greater risks. I don’t know all of the details, but those things spring to mind. I don’t know, but it might be easier to get a loan as an LLC (limited liability company).
I’ve got a buddy who bought a house with a friend. I don’t know if he bought it as an LLC, but either way he might be able to offer insight. I’ll ask him.
My company would most likely do it. Although we are private money so the points are higher. Pass on your friends number to me and I’ll have one of my agents give them a call.
Have you asked dsh about this? It’s what she does…..