So, I talked with a mortgage broker and he told me that I easily qualified for a loan. It will not be a problem. After discussing how much, he said easily 90% and maybe 95%.
I asked him about the idea of having the owner finance the other 5%, but he said banks really like to see that other portion come from my own bank account. He also said that banks will not approve my 90-95% loan if the owner has the other 5%.
How can I get around this?
I asked about pushing up the paper purchase price to show that I have a portion of the down, as suggested to me by two people, but the mortgage broker said that will not work.
100% CLTV products do not exist with mortgage brokers anymore. The broker you talked to is right, you can get 90-95% no problem if you have the credit, which it sounds like you do. You’re local bank will allow 100% CLTV almost certainly. Make sure and talk to the commercial guys though, not residential. Residential bankers will probably go up to 97% FHA backed loan. But the commercial guys will go up to 100% CLTV, usually 80/20. The rates are pretty low right now, primes is 7.25% and will most likely be in the 6’s come last week in January when the Fed meets again. I guess the only drawback is that they only do 20 yr. notes, but if you’re going to do 100% financing you have to build that into your cash flow projections and your offers that you make. Good luck.