Does anyone out there do 10% down investor loans?

Asked by Michelle Granger, Rockwall, TX Mon Nov 21, 2011

I'm a realtor with a client who invests in single family rental homes in the 100k range. He has good, verifiable income, high credit scores and good reserves. Any bank in town will give him 80% LTV's all day long. But in order to preserve his reserve money, he needs to start putting less down. Are there any 10% down loans left out there? Please respond ASAP...we have a deal on the table.

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9
Joshua Leret…, Mortgage Broker Or Lender, Lakeland, FL
Mon Nov 21, 2011
I apologize, guidelines have been updated. it is a maximum LTV of 85% now. Investment properties are allowed with a 15% down payment and a minimum credit score of 660. There is a 6 month PITI reserve requirement as well. Our company is a national direct lender and i am a licensed loan officer in the state of Texas so yes, I would be able to assist you.

Joshua A. Lerette
Senior Loan Officer
Residential Finance Corporation
800.930.7334 Ext. 1108 – Toll Free
813.402.4637 – Direct Line
727.488.7355 – Cell
888.692.5967 – Fax
Josh.Lerette@myrfc.com

http://www.residentialfinance.com
1 vote
Debra Rettbe…, Agent, Bel Air, MD
Mon Feb 11, 2013
Michelle did you ever find anyone? I have the same type client.
0 votes
Alma Kee, Agent, Tampa, FL
Mon Nov 28, 2011
Also check credit unions...
0 votes
Dallas Texas, Agent, Dallas, TN
Sun Nov 27, 2011
Perhaps a smaller bank might lend the money

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Marco Bolado, , San Antonio, TX
Mon Nov 21, 2011
I'm not going to say this is the best option but this is where some investors have turned to private/hard money in an effort to obtain more properties in a shorter period of time - without getting put through the ringer on a conventional loan. If the property has potential equity after repairs then its not uncommon to get into a deal with as little as 5-10% down plus get money for repairs. If investor has the credit/income to qualify for a conventional loan then they just refinance once the repairs are complete and the property is leased out. Granted some buyers can't see past the rates of 12-14% but those that do see it more as a bridge loan than a permanent one. Loan amount usually can't exceed 65% of the After Repair Value so equity is key.
0 votes
Annette Levi…, , New York, NY
Mon Nov 21, 2011
Michelle,
If no one puts in an offer on a HUD owned home for owner occupied in 10 days (or specified time) then an investor can buy the house with a HOMEPATH mortgage. The mortgages are offered through lenders.
0 votes
Michelle Gra…, Agent, Rockwall, TX
Mon Nov 21, 2011
Thank you for your quick response. I thought Home Path financing was only for owner-occupied? Is there one for rehab too? Do these loans go thru a lender, like you? Can you lend in TX? What about reserves?
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Mon Nov 21, 2011
I had a buyer use Wells Fargo and got an 85% LTV on an investment home last month. Try them.
0 votes
Joshua Leret…, Mortgage Broker Or Lender, Lakeland, FL
Mon Nov 21, 2011
Yes indeed there is...but he has to purchase fannie mae/freddie mac owened homes and utilize home path financing. Other than that...you will not find a loan for less than 20% down not because lenders won't do it, simply because no mortgage insurance company will insure it.

Joshua A. Lerette
Senior Loan Officer
Residential Finance Corporation
800.930.7334 Ext. 1108 – Toll Free
813.402.4637 – Direct Line
727.488.7355 – Cell
888.692.5967 – Fax
Josh.Lerette@myrfc.com

http://www.residentialfinance.com
Web Reference:  http://www.homepath.com
0 votes
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