Hello All,
I’m searching to see if anyone knows of some lender who will provide 100% financing on an investment property. Credit score is above 730. Property is in the state of CT. If you have any good leads please let me know.
Thank You,
You are correct that banks giving 100% financing is dead. But there are other ways to get a property with none of your own money at risk. Find a property that is below 70% of appraised value and get a hard money loan, or if you have the equity in your own house use that to buy the whole property with cash. Once you buy a property with cash you can refi to 80% without many seasoning issues.
I’ve done this three times now and it works like a dream.
Cooley5- is that 80% of the appraised value? I was told that if I bought cash, and then got a mortgage on the property, they would only lend 80% of the last sales price?
If it is rate and term (no cash out) you can use the new appraised value.
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Susan,
Can you please define this event a little better? In that your name is on the list of ‘performers’, it appears to be blantant advertising for an even of yours (which would cause of to have to remove it…), but perhaps a better description would prevent that from happening…
Thanx,
Keith
Moderator
Not to mention that I have been spammed to no end for the very same event.
Yes it was Refi to 80%… Thats why you buy at 70%. The most I ever took out of the equity was $8,000.00 after paying off the rehab costs and hard money loan.
Each lender could have different guidelines but a general rule is cash to you at closing of a refinance of $2,000 or more is considered “cash-out” Less than $2,000 at closing is considered “rate and term” Refinance a home to pull cash out is another layer of risk and lenders have separate guidelines for these types of loans.
When you do a rate and term refinance in most cases you can use the new appraised value of the property with no title seasoning.
Hope this helps,
Kevin Amolsch
I am getting a 95% loan right now and I have the builer giving me the 5% at closing by basically having the bank finance the house at 5% more than he is actually asking. He said it is legal for him to go up to 6%.
Rlack72
Just in case no one has mentioned this to you… what you are doing is committing mortgage fraud. He is lying to you about it being legal. He is allowed to contribute up to 3% towards your closing costs and pre-paids, but he cannot give you cash back after closing. Another thing I noticed is that you said you are getting a 95% loan which leads me to believe that either you or the loan officer is not being completly honest about your intentions to occupy the house. There are no 95% NOO loans at this point and time so the lender must be under the impression that you are either going to occupy it as a primary residence or a second home. You may want to rethink your decision to go to closing on this deal.
I will check into that. Thanks for the heads up. I will occupy the house. It will be my residence.
If you are going to use it as your primary residence then there is a legal way to accomplish what you are doing. Have your broker use an FHA loan with a down payment assistance program. The seller can contribute the downpayment legally and it will allow you to avoid all kinds of possible legal issues. Hope this helps.
As always, Chris has sound advise. I just wanted to point out that there actually is a 95% option. It’s structured as an 85% 1st mortgage with seller held 2nd of 10%. This leaves the remaining 5% coming from the borrower. What CANNOT happen is the seller (either personal or builder) throwing away the 2nd in some sort of undertable the deal. This would be fraud just to get the borrower into the property.
Thank you Christopher W and Investment Loans. This is good advice. After speaking with my mortgage lender and the builder last night, we realized he had mispoken. We are going with a conventional loan and the lender is giving me back 3% which is the cap.
Yes…100% financing is still an option with Commercial Down Payment assitance.