Does anyone know if there are any lenders that still allow a borrower to have a 2nd mortgage for a down pmt. for a NOO investment property? For example, having an 80% LTV in first position and then a 20% in a 2nd position. I’m seeing a lot of local lenders that require 10 - 20% down. I’m assuming that’s the norm at most lenders. Any input would be appreciated. Thanx.
Phlem,
Conventional and sub-prime 100% LTV or CLTV is gone. 90% is the best you will find in today’s mortgage market. However you can purchase using HML and then do a no-seasoning refi essentially getting you 100% financing. Hope this helps.
Thanx. It does. That’s about what I figured. I knew of the HML option but I was curious as to what;s going on elsewhere.
Once again, not true. Local banks will do this all day long. You just have to talk to all the small banks in your area and find out who does it. I do about one of these deals a month at 80/20. We had this discussion a while back. Just because you cannot get 100% doesn’t mean that it “is gone”. The more appropriate comment would be something like, “Secondary market 100% financing is gone, but I hear that small, local banks still do it.”
J,
Thank you for the advice but I think I wil stick with my original answer. Depending on the area not all small local banks offer programs like this. In addition small local banks do not do 30 year amortizations which can seriously affect cashflow. So while your advice may work in your area my advice is relative to the ENTIRE country.