I am wanting to buy a duplex for 100K. Currently, each side rents for 500. My lender says I will need 13,00 for closing (10K for downpayment, the rest for closing costs) How can I structure this where I don’t have to come to closing with any money or can walk away with money? Thanks for the help!
It looks like you are getting 90% loan… Maybe you can get the seller to take a second
Your lender doesnt offer 100% financing? There are programs for this if you can qualify. You should contact a mortgage consultant that specializes in investment loans.
apparently your lender either does not have access to 100% financing or your parameters disqualify you from that type of loan.
If you are using a normal lending institution then 100% is probably not available. You may want to contact a broker before “signing on the dotted line”
You can get a 2nd mortgage from another lender for the 10%. Are you paying mortgage insurance since you are not putting 20% down? If so get a 80/20 loan. you will pay a higher rate for the 2nd loan but thats all deductible and not a problem if you have pos. cash flow. As soon as your property appretiates 20% refinance both loans into one.
If your going to get 100% where is the cash flow?
What is your middle credit score? Is it a full doc or stated loan? If it qualifies for 100%, you can add seller concessions to the purchase price if the seller does not want to pay for them. Just up the purchase price by 3% if it is investment property and 6% if you plan on living in it. You can use this 3% or 6% towards your closing costs.
find a lender that does not have a seasoning rule, and have the seller agree to a ninty day note payable in full have them transfer title and refinance to pay off note. have the lender get the refinance aproved before you sign and close with the seller. then after it is recorded with the county the refinance can be closed on and seller gets paid. I have done 2 4-plexes and on 2-plex this way. generally the refinance interist rates are lower, and they will loan 100% to 125% of value. Also make sue that you close on the 1st day of the month so that you are entitled to all prorated rents at closing. one months rent and no payment for 45 days pocket money.