A freind and I would like to purchase property and either do straight rental or RTO/LO. Preferably the latter. Looking at SFH around 100,000 to 125,000. Friend has 700 Fico
and I have 620. Combined we make about 115000 a year. We Have 6-8 month reserves. Looking to go full DOC. Are there 80/20 interest only loan programs available.
The program you are looking for no longer exists for NOO properties. The best you will find avalable is a 80/10 or a straight 90%. Another option you might consider is using private or hard money to purchase the property and then turn around and do a no seasoning cash-out or rate term refinance. This way you will in effect have 100% financing. Hope this helps.
That is 90% of purchase price. Rate depends on the lender. I am closing one tomorrow where the rate is 7.75% at 90% LTV. This customer would have been better off doing a 80/10 but he is only planning on holding the property for a short time.