Financing Question

Financing, Hard Money Lenders, Private Money
1

Hi,

Looking at buying a two-unit property for $265K in Florida for an investment. Property should appraise for $330K or more. Rentals will cover the mortgage payment on a $256K loan (i.e., even with no downpayment).

Question: If I apply for bank financing I expect most banks will only lend on an 80% LTV based on the purchase price, not appraisal price.

If I use bank financing to get into the property – how soon can I refinance to get out my down payment?

Any lenders out there who will lend on appraised value or at 90%LTV? What interest rate / terms?

I have excellent credit history and investments in other larger apartment complexes.

Thanks,
Kayaker

2

There are lenders who offer 100% financing on non-owner occupied properties nowadays. Figure high 7’s/low 8’s on the 1st, and anywhere from 12-16% on the 2nd.

Because of the high interest rates for high CLTV financing on N/O/O properties, usually 5-10% down is recommended. If your income qualifies on paper, figure rates in the mid to upper 6’s on the 1st, and around 10% on the 2nd.

3

There are lenders who will do high ltv cash out refinances with no seasoning based upon the new value.

Who’s doing your financing for you?