Posted on: 14th Apr, 2010 07:17 pm
I have applied to so many places that I have lost track trying to find a way to finance a home before my sales contract expires. About two weeks ago I was contacted by someone from Northeast Funding Group. The gentleman said that they had approved a loan for me in the amount that the home would cost ($40,000). He said I would need a co-signer. When I hesitated a second, he said that they have investors that will co-sign for me at a cost of $1500. The $1500 would be returned to me when I have completed six months of on time payments. The payments on a 30 year term were comparable to what I had been hearing from lending institutions that were quoting an interest rate of 6.5 to 7 percent. The man I spoke with said this is a "personal loan" and I can spend the money on anything I want. They are not mortgage brokers so cannot take the home as collateral. He then asked if I was prepared to send the $1500.
I must admit that I wondered if this is a way to relieve me of my money and never see the loan so I called the state where they do business (according to the website he directed me to). I was able to get a business license number and also was told there are no complaints against them in consumer affairs for that state. I also called the Better Business Bureau and found no complaints there.
I am now debating as to whether to try this avenue or just keep on searching for a private lender to make my home purchase happen. My problem with finding a loan is that I have no credit history. I cut up the one and only credit card I have ever had in 1974. Since then I simply paid cash or did without. To make matters worse, the past year was financially rough and the best way to get through it was to stay rent free in a home to keep it secure for the homeowners. All the utility bills are in her name and I send the money to her when she submits the bills to me.
Your thoughts?
I must admit that I wondered if this is a way to relieve me of my money and never see the loan so I called the state where they do business (according to the website he directed me to). I was able to get a business license number and also was told there are no complaints against them in consumer affairs for that state. I also called the Better Business Bureau and found no complaints there.
I am now debating as to whether to try this avenue or just keep on searching for a private lender to make my home purchase happen. My problem with finding a loan is that I have no credit history. I cut up the one and only credit card I have ever had in 1974. Since then I simply paid cash or did without. To make matters worse, the past year was financially rough and the best way to get through it was to stay rent free in a home to keep it secure for the homeowners. All the utility bills are in her name and I send the money to her when she submits the bills to me.
Your thoughts?
I don't think it would be a good option to go for such a loan. If the person cosigns for you, you won't be able to remove his name from the property deed until you refinance the loan. Moreover, there is no guarantee that he would return $1500 after you finish 6 months of loan payments. I would suggest you to contact an attorney and draft an agreement regarding the return of payments and then give him the required amount.