Financing in 73112>Question Details

Nicholasamr, Home Buyer in 73127

Is it possible to buy investment prop in okc with less than 20% down?

Asked by Nicholasamr, 73127 Mon Apr 25, 2011

My parents want to buy an investment prop in okc, I will rent it from them. They only want to put 5-10% down. Their credit score is over 800 and they have very little debt, anyone know of any lenders that might be willing to lend with less down?

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Rose Wilkinson’s answer
Why go through all of the red tape of obtaining a bank loan when there are a sea of sellers out here DESPERATE to lend you their equity with no money down and 6% interest? Without a credit check, and close when the title clears?

Just curious.
0 votes Thank Flag Link Mon Nov 28, 2011
Bank of OK may or may not have a loan for investment properties with 10% own, but to say "generally speaking 10% is about how much you need" is blatantly false. The only other program available for investment properties with 10% down would be HomePath and the property has to be a Fannie Mae REO that qualifies. Generally speaking, 20% is required for conventional financing on an investment poperty (better terms with 25% down) and unavailable with government financing.
Web Reference: http://WeFixRates.Com
1 vote Thank Flag Link Mon Apr 25, 2011
I know a lender who will lend with 10 percent down.
0 votes Thank Flag Link Sat Jul 23, 2011
Yes. Three solutions that come to mind are:
1. Do an FHA "Kiddie Condo" loan with both you and them on the loan and put only 3.5% down.
2. If the property will meet FHA guidelines and they don't already have an FHA loan, they could buy an investment property with FHA financing and put 15% down.
3. Or if you have 5% down payment and can credit qualify for the home, they could gift you the rest of the money for the down payment.

I hope this helps. Please reach out to me if I can help you out. Good luck!
0 votes Thank Flag Link Sat Jul 9, 2011
Hi Nicholas:

As stated earlier, BOK will loan with less than 20% down, given certain criteria is met. Also Republic Bank will sometimes loan with 5% down, again certain criteria must be met. Others I know that have loaned for investment property with less than 20% down are Bank of Union City and individuals that enjoy loaning their personal money in Real Estate.

If you need help finding a good Investment property, I'd love to help. My company and I have a huge inventory to choose from plus I have access to all the listed properties for sale. It will save you and your parent’s time and money to have a Single Party Broker working for you and your best interest! You can reach me at Jenn@JenniferSellsOklahoma.com or (405)625-1576.

Jennifer Henning
REALTOR | GREEN Designee
[p] 405.625.1576
[e] Jenn@JenniferSellsOklahoma.com
0 votes Thank Flag Link Sun May 1, 2011
Your best luck is likely with a smaller local lender with local investors that can make exceptions. Most want 20 percent. I will check with a few on monday and if they have the ability to make exceptions i will suggest they respond.
0 votes Thank Flag Link Sat Apr 30, 2011
To the poster of this question: I am sorry a simple request has turned into this getting off topic. Truth be know the MLS is full of great deals that all agents who are members of the local board of Realtors® (which I am) have access to all the info. Additionally there will be many new listings coming of both foreclosures and investor type properties. I myself will be listing an as is deal near 42nd and Classen that should be pretty cheap but I will know more in a few days. Getting a loan with good credit is not an issue and 10% down loans for investors and readily available in Oklahoma. What people forget is that we are in much better shape than many other states and owning rental property is a great investment. I'm closing on a deal Friday for $30,000 that has an assessed value of over $70,000 so deals are out there. Good luck and feel free to contact me directly for additional information.

Russell Benson, Realtor®
Prudential Alliance Realty
0 votes Thank Flag Link Tue Apr 26, 2011
I am an agent with Keller Williams in Oklahoma City. I am working with several investors in the metropolitan area. Most of the investors that I am working with are paying cash or putting about 25% down. If you or your parents would like to contact me, I would be happy to explore their options with them.

Carolyn Sims
Keller Williams Northwest
405-808-7922
http://www.csimshomes.com
0 votes Thank Flag Link Tue Apr 26, 2011
WOW!

Unethical responses? I would love to see where I said something "unethical". Maybe if one were to actually read what I wrote they would understand it better. I clearly stated that I don't know what Bank of OK offers; the entire point was to dispel the notion that putting 10% down on an investment property is the norm. Contrary to what you guys in Oklahoma may believe, there are 49 other states out there and people from those states can read too. Since this forum is about information, I find it imperative to give it accurately, and regardless of what is offered by one bank, it disingenuous to hold that out as if it were widely available. My objection was to one statement and one only, I clearly was not questioning what Bank of OK offers. In case you missed it, here it is again: "generally speaking 10% is about how much you need".
R.I.F.
0 votes Thank Flag Link Tue Apr 26, 2011
Also, for the OKC guys, GO THUNDER! Huge Durant fan here. ; )
0 votes Thank Flag Link Tue Apr 26, 2011
There is no doubt that certain banks offer "portfolio" products that are only offered to a certain region or segment of clientele. If bank of OKC offers that investment product, it does not surprise me and it sounds like a great deal.

On a national level (bank, correspondent, wholesale) Greg is right in that there are no products available for less than 20% down at the present time for investment properties. The reason is that there are no mortgage insurers that will insure investment properties right now, at least none that i know. I think that will change soon though as values seem to be leveling off and insurers are getting a little bit more aggressive with their offerings.
0 votes Thank Flag Link Tue Apr 26, 2011
Sounds as if Bank of OK has a great program--that financing is a lot better than you'll find in most places.

In addition, though, your parents might want to look at properties that offer owner financing. In that case, it's all negotiable and while not all owners will accept a low downpayment, some will.

Or consider an equity-share arrangement with your parents. There are ways to structure equity sharing so that your parents can pick up the benefits of an investment property and you can pick up some of the benefits of home ownership, and likely qualify for financing as a primary residence. Purchasing with a land trust--if structured properly--can provide those same benefits.

Hope that helps.
0 votes Thank Flag Link Tue Apr 26, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Good Morning:
This would totally depend on their mortgage co;, Banks are probably better situated for this type of loan, Also since you are going to live in the home as a family member, this should be ok.
I have several banks that do home loans:
Send me your parents information so I can contact them and get this started:

Thank You
John Phillips
ReMax Preferred Properties
jphillips81@cox.net
405-413-0791
0 votes Thank Flag Link Tue Apr 26, 2011
I think I know our market in Oklahoma a little better than those from California or any other state for that matter. You absolutely CAN get a non owner occupied loan for 10% down in this area so before you start making unethical responses to another persons post, you should be a little more familiar with another markets product. Fact is Bank of OK has a great loan that is a fixed HELOC for 15 years at an awesome rate.

Russell Benson, Realtor
Prudential Alliance Realty
0 votes Thank Flag Link Tue Apr 26, 2011
The "dude" from CA is not "angry", just prefers that consumers get correct information. And as I stated, I don't know what Bank of OK allows, but if it's 10% on investment properties that's great, but saying that is the norm is incorrect and not very good advice. It's amazing how everyone on this site is so touchy when corrected. There is nothing in what I typed that could possibly be taken as "angry"... dude.
0 votes Thank Flag Link Tue Apr 26, 2011
Get approved for VA Vendee financing. What's up with the angry dude from CA? Russell is corrert in what he wrote. Generally speaking, Bank of Oklahoma will require at least 10% down on investment properties, depending on the applicant.
0 votes Thank Flag Link Tue Apr 26, 2011
Yes it is. Bank of Oklahoma has a great loan right now but generally speaking 10% is about how much you need.

Let me know if I can be of further service. I sell lot sof rental homes and investment properties and would be happy to find you a good deal somewhere.

Russell Benson, Realtor®
Prudential Alliance Realty
405-378-4442
0 votes Thank Flag Link Mon Apr 25, 2011
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