If an investor has excellent credit, over 100K/year income, have $60K in the bank, will he get 100% loan from a lender?
There are lenders who offer 100% CLTV financing. As always it depends on the parameters.
I just had a prospect tell me they are getting 100% financing on an investment property with 1 loan (no pmi). And they are even getting back money.
Sounds like a nonconforming lender. They usually have much higher rates but in this case, rate wasnt important as they are selling in the next couple months.
He is supposed to let me know who the lender is.
The conventional lenders that have 100% financing will usually need to split this up into a first and second mortgage combo. So it could be possible for you to get 100% depending on some other factors.
If I can qualify for a $500k loan through a lender the conventional way and the cost of the house/rehab/closing/ etc. is $450k, is there an early termination fee if I’m able to flip it right away?
It would depend on the lender and/or program.
When you say rehab, how much work needs to be complete? Were you thinking that you wanted the lender to fund the purchase price + money to fix up?
In that case you would need a rehab loan.
Are just talking about cosmetic work? If so, then it’s possible you could get 100% of the purchase price and the seller could cover 2-3% in closing cost.
Most conventional loans wont have a prepayment penalty but the broker needs to know upfont that you intend to sell the property. We get paid a premium from the lender for doing the loan with them. If a loan paysoff within the first 3-6 months the lender can ask for that premium back. Since the broker can not be compensated for his work by excepting the premium from the lender, you would likely see a higher origination fee.
But most lenders have their own policies towards this so it may not even be a factor depening on your qualifications.