No more 100% financing or 80/20 these days?

Did a search on 100% financing or 80/20 and the last post was dated 2005.

Are these financing options still possible with conventional loans (no hard money loans)? Or are they next to impossible given the current market?

I am specifically looking at 2 family investment properties in northern New Jersey and would like to put as little as possible down without using hard money lenders or seller financing.

My credit score is 780 and am self employed but have decent income (6 figures plus)


Please excuse my stupidity - apparently I was not limiting my search to the past year and was coming up with too many hits.

It seems the consensus is that their is no more 100% or 80/20 conventional financing and 90% is pushing it…

So to rephrase my original question, what conventional financing options do I have with 780 credit score and decent income (although self employed) for 2 family investment properties in North Jersey. Can I get away with 10% down and if so what kind of rates can I expect?

Thanks again.


Depending on the real estate market in the area you are buying 90% may still be a possiblity. If it is a soft, declining, or distressed market you may be looking at a max of 85%. Quoting a rate is impossible at this point because there is not nearly enough information provided to get an adequate picture of your scenario. Depending on the discount you are buying the property for you may find it better to go to your local bank and get a business line of credit. Then pay cash for the houses and refinance at the lower LTV. If you are self-employed and can prove a six figure income there will be banks lining up to give you a business LOC. Hope this helps.

100% financing is still possible if you are working with a small local bank AND if you buy at a huge discount.

I closed on 11 units in 4 buildings in January with 100% financing. (100% of the purchase price, less than 50% of the market value).


Thanks for the replies.

A business loan sounds expensive - what would be a typical rate for a 400k loan?

I’m guessing the business loan is not fixed either?

Conventional 100% financing is no longer available. Just as Chris stated, 90% max with deduction if declining market. Can be done as full doc or stated.

You wont find any of the professionals on this board shooting out rates, it’s considered unprofessional as it really confuse other readers. With so many factors going into rate/costs it really needs to be analyzed off forum.

Same with the business line of credit. Although not many options or factors go into this, it would be best to discuss off forum. Will send you a pm. I can tell you that there are some costs to this though, not out of pocket but from initial loan.

Stop giving out false advice and information. 100% financing may not be available to mtg brokers and the secondary market but it’s alive and well at your local bank. Also, why would it be deemed unprofessional to let people know what kind of rates they are getting now. This forum is setup to offer advice to REI and posting the rates you’re getting is far from being unprofessional. By the way I’m getting like 7.25 at my local bank.

Deeze6 - if you’re wanting to purchase RE go to your local bank and work with them, forget this business line of credit stuff. There’s alot of that crap going around today, but let’s be realistic, in this market who’s going to loan someone 250k unsecured. Not realistic sounding. Anyone quoted as saying 100% financing is not available is one of two things. 1) Not a REI, just a mtg broker, or 2) Not smart enough to structure a 100% deal. Don’t follow their advice either way they don’t know what they’re talking about!


  1. Conventional financng is not “local bank” financing. Wholesale lenders doing conventional financing no longer offer 100%. No matter what you think, your bank loans are not being sold off into the secondary market to Fannie or Freddie.

  2. This board is not meant to throw out rates. This was just brought up a week back in another post. The unprofessional part comes in when people list rates without disclosing the qualifications or terms. For example…you mention you received a specific rate. Is that on a 30r fixed, 25yr amort, balloon, arm, interest only? Do you have a high credit score, low score, solid employment, income, assets? What type of property was this, 1 unit, 2 unit, 3 unit, 4 unit? How much in closing costs were there? Everything is relative when looking at a rate. If you dont disclose those items along with other factors that need to be considered, then anyone reading will jump to the conclusion that they too can get that rate. No need for you to post that data now, just be careful in the future.

By the way, here was the clip put into quotes from the moderator on this same subject last week.

I do agree with you that local banks are absolutely a great source to find 100% financing when a property can be purchased a deep discount. More than a handful of times per week, I’ll run into prospects calling me where I’ll first instruct them to open up there local yellow pages to the banks and start calling the commercial departments (not the retail lending side). My advise is that they may need to call 50 to find 5-10 that would comfortably work with them.

May I make a suggestion, if you feel somebody on this board is not giving sound advice would you please ask them their thoughts on the topic and how they concluded their observations. This may be much better than trying to bash someone when you misunderstand something you feel very strongly about.


The only thing I can add to what Ben just posted is in regards to the business line of credit. I don’t know what the banking enviroment is like where you live, but here in Dallas, Texas banks are actively marketing to businesses for lines of credit and banking relationships.

I am not talking about someone on this board getting information on getting a shelf corporation and applying for a stated income line of credit.

I am talking about an established business that can provide income information. Which is what the OP stated he can do. Local state banks will provide lines of credit on accounts receivable, CD’s, etc…

I have helped many many small business owners (mostly builders) set-up accounts with local banks using CD’s to borrow against. When they utilize this type of lending the CD acts as a down payment in LTV calculations but can also be considered a liquid asset in terms of leverage.

Hey deeze6,

This from a guy who for the past week has been speaking to mortgage brokers, banks, credit unions, and lenders about financing residential investment property. Since I think financing is absolutely market specific, this info is from the Indiana market. Let me talk first about purchase money. 100% financing is NOT available from any of the above mentioned. 90% is the best I’m seeing. Several banks and a credit union both offer this with a fully documented loan. The rates and costs are very good. If you want to know the rate I got on a 80% LTV 30 year fixed closing tomorrow, just ask. Refi’s are a little different. The big issue here is seasoning. Daily, lenders, banks, etc… are changing guidelines to extend seasoning requirements. The norm I’m seeing now is 12 months. A conforming loan can still be done with no seasoning.

I would love to hear from investors with more than 10 mortgages. As portfolio money continues to tighten, are you finding that commercial money is an equitable solution? Have you found any pitfalls blanketing 5 to 10 mortgages?