Financing in Brooklyn>Question Details

Trulia Brook…, Other/Just Looking in Brooklyn, NY

What is the best way to buy or finance your first income property with little cash?

Asked by Trulia Brooklyn, Brooklyn, NY Wed Nov 7, 2012

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My NC Homes Team’s answer
FHA loans or possibly (if you've the access) a Credit Union, to be frank it's very unlikely you will be able to get a loan for investment property without at least 25% down.

Today's lending environment does not allow for investing in property with little or no money down. Real investors have at least 25% or more to put down, and most of my serious investor clients buy with cash or at least 50% down.

The interest rate on investment property is higher than for a primary residence. If you're able to find a loan without 20% or more down you're going to be charged for mortgage insurance and the combination of higher rates and mortgage insurance will skewer the numbers and your investment probably won't make good economic sense

You need to find yourself an experience Realtor who really understands investing, most agents really don't have any clue at all how to evaluate investment properties. Investors I work with won't consider any property that won't generate at least a 10% return on Investment.
0 votes Thank Flag Link Thu Nov 22, 2012
Research an FHA Mortgage for first time home buyers.
your 1st step is to consult a reputable mortgage broker.
Let me know if you need help - can get you a list if you have not already done so.
0 votes Thank Flag Link Thu Nov 22, 2012
Dear Trulia Brooklyn:

It is very difficult if the property is not your primary residence. In most cases you will have to come up with 20% down or more. If anyone out there knows of a bank that can do it for less than that, I would love to meet them!

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
0 votes Thank Flag Link Wed Nov 7, 2012
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