Is it possible to get a conventional loan for a NOO home/condo with 5% down?

Asked by Krista Asp, Irvine, CA Mon Apr 29, 2013

We'll be moving to Orange County in the next year, but would like to purchase while we still have two incomes. I'll be attending school full-time and will not have a job.

Help the community by answering this question:

+ web reference
Web reference:


PacWest Properties’ answer
PacWest Prop…, Agent, Orange, CA
Mon Apr 29, 2013
The short answer is "no" you can not purchase an non owner home with 5% down..
There might be other options that you can explore, there is not enough space to tell you here, but it is easy for you to get more information.. go to fora complete list of homes for sale and enter your email for a free report on the many ways to finance real estate or you can call 714-771-3800 for a no obligation consultation on your specific questions.

Scott Fredrickson
0 votes
, ,
Wed Jan 6, 2016
Actually there is a 'bank police' that monitors your loan for 12 months after closing the transaction.
Welcome to the computer age.
FNMA, Freddie Mac and GNMA (and all other investors) monitor the names that are hooking up the utilities. They monitor the address on the checks that pay the mortgage of the account from which the auto payment is coming.
The Note that you are signing states that it is your intention to occupy this property from the time of the inception of the loan for a minimum of 12 months.
Should the lender discover that this is not the case, the loan will be 'called' due an payable within 30 days of the discovery.

It is best to listen to the professionals in these cases. "Lying" as stated below to a lender constitutes mortgage fraud and that could get you in trouble...

The mortgage meltdown of the past few years has opened the eyes of the lenders.
0 votes
hogwart, Both Buyer And Seller, San Diego, CA
Sun Jan 3, 2016
Don't listen to these broker douches. Yes it is possible. Just take out a conventional 30 year mortgage. 5% down. The bank may stipulate that you not rent the house out for 12 months. They will not send out the bank police to do 'pop' inspections on your rental house. They don't care. You will be fine.

Why pay 12%? Why put 10% down or even more? The main thing is not to lie to the tax man. That can get you in trouble. Good luck getting rich in real estate. Ignore the other predators.
0 votes
Tony Warfield, Agent, Manhattan Beach, CA
Tue Apr 30, 2013
Wouldn't that be wonderful for all our investors? Let's us know if you find one that comes close 10 or 15%
0 votes
, ,
Tue Apr 30, 2013

Unfortunately - there are no programs as described for NOO properties. Agency guidelines are a lot more stringent for NOO. Why? Statistics show when borrowers get into a financial pickle - they stop paaying on NOO before they stop paying on their primary residence.

Good luck!

Grant Fawcett
Mortgage Banaker
Castle & Cooke Mortgage
Ph: (949) 212-4578
0 votes
, ,
Tue Apr 30, 2013
Hi Krista Asp,

I do not know of a loan program to buy an an investment property (NOO) with only 5% down, whoever, I do know of a loan program for you to purchase a second home with only 10% down & no monthly mortgage insurance.

One item of note, when you finance a second home, you will be agreeing not to rent it out for the initial 12 month period.

Please feel free to contact me directly if you have any further questions, I'd be glad to help.

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline refinance loans (NO minimum credit score, NO appraisal required), HARP 2.0 - No Appraisal Required to Refinance Underwater Homes, HomePath, Investor Friendly (10 financed properties), VA, VA Refinance loans (NO appraisal required on IRRRL loans), USDA loans, Jumbo loans, Conventional loans, plus, we allow Escrow Hold-Backs!
0 votes
Hi Ros,
Thanks for your reply. Would I qualify for a second home loan if I am currently renting my place of residence and not a homeowner? I do intend to live in the house eventually.
Flag Tue Apr 30, 2013
Birgit O'hea…, , Orange County, CA
Tue Apr 30, 2013
Hello Krista,

You need to work with a Lender or a Mortgage Broker to find out if you qualify for a loan with a 5% down payment. I work with several outstanding lenders that can help you. If you'll contact me, I'd be happy to refer them to you.

With Warmest Regards,

Birgit O'Hearn, Realtor
Cell: (949)463-7955
Keller Williams Realty
0 votes
, ,
Mon Apr 29, 2013
Wouldn't that be great...I do have a program that might be of me at 949.954.4063.
0 votes
Rochelle Cha…, Agent, Mission Viejo, CA
Mon Apr 29, 2013
Hi Krista,
You should consult a lender for the best information. Let me know if you need a good lender to speak to.
Rochelle Chacon
Keller Williams Realty
949 533-1262
0 votes
Search Advice
Ask our community a question
Financing in Orange Zip Codes

Email me when…

Learn more