Financing in Ocean Shores>Question Details

Jnlsmom@exci…, Other/Just Looking in Bellevue, WA

fiance and I have a combined income in six digits; but no available cash for a downpayment; yet found a condo

Asked by Jnlsmom@excite.comm, Bellevue, WA Wed Mar 5, 2008

in ocean shores we are interested in. Are there any zero down loan programs for investment properties in wa state?

Help the community by answering this question:


I can't speak for Washington state--sorry--but 100% financing for investors has really disappeared across the United States.

There are dozens of ways, though, to buy investment property without any downpayment. However, make sure that either the property will cash flow, or that you (or partners) can absorb the monthly losses. In many parts of the country, it's difficult to make properties cash flow even with substantial downpayments.

Among the ways to purchase a property with no downpayment:

Get another investor, one with cash. Purchase the property together (equity share, and/or in an LLC or land trust). They put up the cash; you presumably manage it or handle the other aspects of the transaction. You share in the proceeds.

Persuade the condo's owner to provide financing. If he/she doesn't need all the money out right away, the owner can be the "bank." It can be structured as a land contract or deed for contract.

Lease-purchase the property.

Use an Illinois-style land trust, and use a technique called a NEHTrust. You have the owner put the property into his/her land trust. You become an investor beneficiary of the trust. You find a resident beneficiary to rent the unit--typically for the amount of the mortgage. Now there are three owners of the trust--the seller, you, and the resident beneficiary. The resident beneficiary provides the up-front money and the monthly payment. At some point in the future (usually a couple of years), the property is brought out of the trust, the resident beneficiary refinances the property, and you and the original owner receive some of the proceeds.

Subject-To. This works with distressed properties. The owner transfers the deed to you, but remains responsible to the lender for the mortgage. You may pay the seller a token amount. You pay the mortgage. And at some point you refinance, thus putting a mortgage in your name.

Those are just a few ways to buy an investment property with no downpayment. However, again, since you don't have any available cash, you really have to make sure that either the investment will have a positive cash flow or that you have a way to handle the negative.

You should consult with an accountant and a lawyer to make sure you're safe and protected.

Hope that helps.
2 votes Thank Flag Link Wed Mar 5, 2008
Don Tepper, Real Estate Pro in Burke, VA
I have worked with several excellent (and honest) loan officers who tell me that there are still zero down options available for those who qualify. While looking for a loan be sure to speak with several lenders and ask for good faith estimate on each type of loan you are considering, then compair the good faith estimates or ask your agent to do so for you. It is important that you find a good loan officer to ensure you get the best deal, service, and that the loan closes on time.
0 votes Thank Flag Link Wed Mar 5, 2008
Ocean Shores IS Fun! I'm not in the financing business, but another option is to see if the seller will pay your downpayment - if the lender will allow. In these days and times you must get creative! Good luck!
0 votes Thank Flag Link Wed Mar 5, 2008
Hi. I'm a Real Estate Broker in Ocean Shores. There are some lenders in Ocean Shores who might very well be able to find you a zero down program depending on your situation. Five percent is about as good as I've seen it lately (which is excellent!). Call Carol Warfield at The Bank of The Pacific at 360.580.0187. She's an excellent loan officer who does a lot of business in Ocean Shores. Good luck. Jeff Daniel, Designated Broker for Coldwell Banker Ocean Beach Properties.
0 votes Thank Flag Link Wed Mar 5, 2008
Your best bet is to start speaking with some lenders, there may be some options out there but you have to look for them. The best I have been seeing is at least 5% down for an investment property. I think it might be in your best interest to at least check out a few lenders so you will have an idea of the process on investments and to compare your options. As a Realtor I rely on the lenders to do their job and fulfill my clients needs and requests, this is truly their area of expertise and hopefully a couple of lenders from your area will jump on this question and offer some advice. Wishing you the very best and I hope you manage to get the condo...I love Ocean Shores! Gorgeous!
Good Luck
0 votes Thank Flag Link Wed Mar 5, 2008
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