does anyone know of an investment loan with 10% down instead of the standard 20% down?

Asked by Northend, Boise, ID Wed Feb 10, 2010

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Joe Kaminski, Agent, Bethlehem, PA
Wed Feb 10, 2010
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Fisher -- you are probably looking at identifying a "hard money" individual investor(s) who will finance your purchase, however, you will need to pay points, and the loan will have a higher interest rate. Then after you own the property, possibly make some improvements, etc. you would be able to refinance to a more normal financing vehicle.
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Juan, , 91331
Thu Mar 16, 2017
we have this program, Rates starting in the 4’s•Up to 90% LTV with No MI•2 years seasoning foreclosure, short sale, BK, DIL•Loans up to $2 million (Minimum loan $75,000)•Credit scores down to 620•Cash Out for Reserves OK•Gift funds allowed•DTI up to 50% considered
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Craig Ballha…, , Boise, ID
Wed Jun 9, 2010
Home Path financing with Guild Mortgage of Boise offers 10% for rental property purchases with no mortgage insurance and no appraisal
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, ,
Fri Jun 4, 2010
Oops another thing...Fannie changed their guidelines, so make sure you income qualify. The maximum debt to income (DTI) ratio was 50%, now it's 45%. Remember, you have to qualify using your income versus your current housing payment and the rental payment. If you are a first time investor, you cannot use the income from the property to offset the income of the rental property. If you are a veteran investor, your most recent purchases (within a year) must have at least 30% equity in them in order to use the rental income for qualifying purposes (FNMA ruling June 2009). Fannie is contemplating on requiring 2 appraisals soon. I'm hoping that will do away with HVCC. However, FNMA's homepath properties don't require a new appraisal. You can go to a traditional bank with 20% down. Most Brokers use non-traditional banks that require 25% down which is why you'll see different answers.
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, ,
Fri Jun 4, 2010
There is a product available at 10%, however, it has to be a Fannie Mae foreclosure. Go to http://www.homepath.com and check out Fannie's Foreclosure's. Ha...sounds almost like a real company huh? The HomePath loan was extended by Congress for one more year. It requires at least a 680 credit score, I believe (haven't done one yet). Other things about it: 10% down for investor. Fannie will pay up to 2% of closing costs. Appraisal already done. You may finance up to 30,000 in repairs to the house, however, finding a lender to do the repair escrow is a tough one. That's why I'm going to tell you to find a broker that works with Plaza Mortgage. Banks like Regions and Wells Fargo can do HomePath loans but not the repair part of it. Plaza will do the repair part of it. Be patient. Plaza sucks and takes forever to underwrite (typical turn around time is about 60 days to close if doing repairs). They are very picky about the contractor's invoice. Let the broker decide who to use for the repairs (don't do it yourself). You can have anything done that is not structural. You can buy new appliances, upgrade kitchen, bath etc. If anyone reading this is buying a homepath property as a primary residence, the minimum down payment is 3%. Oh...and there is no mortgage insurance on the 10% down investor loan or primary residence 3% down (it's built into the rate). Hope this helps.
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Pat & Steve…, Agent, Westlake, OH
Wed Feb 10, 2010
Personally, since this appears to be your first investment property, I believe you should wait until you have the downpayment to obtain a tradional bank loan. Financing from an individual investor can be a "difficult situation" when one is not a seasoned investor.
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Lew Corcoran, Agent, Easton, MA
Wed Feb 10, 2010
You will not be able to get a mortgage with less than 25% down on an investment property for two reasons:

1) You can not get private mortgage insurance (PMI) for investment properties; and
2) Fannie Mae now requires that you put at least 25% down.
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