Home Buying in San Antonio>Question Details

Amanda Diaz, Home Buyer in Cibolo, TX

My husband and I own a home, we are interested in buying an additional home/homes for reasonable prices due

Asked by Amanda Diaz, Cibolo, TX Wed Aug 20, 2008

to the current amount of foreclosures on the market as investment property. Is there a way to do this with 100% financing and no to little money out of pocket? Who do we talk to? Thanks!

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Until 9/30/2008 you can still utilize seller-funded down-payment assistance. If the seller is willing to offer concessions shown on 12A(1)(b), your Realtor can convert those funds into DPA, provided the appraisal value on the property is above the sales price.
Talk to your Realtor first about the properties that would qualify for this type of arrangement, and move quickly because time is running out. If you were a first-time homebuyer, HUD is still offering $100 down payment on houses sold at full price. So, you have at least two options for now.
Web Reference: http://www.SumnerRealty.com
1 vote Thank Flag Link Thu Aug 21, 2008
Hi Amanda,

It sounds like you've got the passion and the idea to get into real estate investing. Great decision. I work with a handful of experienced and seasoned investors, so I'd be more than happy to throw some tips your way. I can introduce you to a "hard-money" lender who will fund 100% including rehab and carrying for 6 months which means you can absolutely spend 0$ of your own hard-earned money and sell it less than 6 months later for some pure profit. That is however, if you already have what it takes to rehab and can keep cool under pressure. Just let me know you are ready for it?

Have a great day!
Web Reference: http://www.eXposedHomes.com
0 votes Thank Flag Link Wed Aug 20, 2008
Your first step is to speak to a lender. I've got several that I work with, and if you need, i'll be happy to refer you to them. They will advise you on your best course of action, in order to buy an investment house with little to no out of pocket. A word of caution though - due to the market conditions changing over the past year, it has become more and more difficult to purchase an investment property with no money out of pocket. But only a lender can truly answer that question.

If you need assistance in finding a lender, or after you do find one, give me a call at 210 324 5879, and I'll be happy to assist in guiding you through the rest of the process.
0 votes Thank Flag Link Wed Aug 20, 2008
There are a few ways to do this. Likely you can't do straight 100% financing on investment properties any more using traditional lenders. However what you could do if you have the funds is borrow against your current property with a home equity line of credit or you could borrow against your 401k or stocks. This is especially attractive to do if you can buy under market value for example at auction. You can buy, fix and then take out potentially 100% financing or more and return that money from the source and have what you intended in the first place. This is a nice strategy.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Wed Aug 20, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
The best you will find with a lender offering good rates is 10% down..that will require mortgage insurance though. The mortgage insurance is required on any loan over 80%loan to value. Putting 20% down is the best way to avoid that extra monthly cost. It is a great time to buy you are correct. I work with alot of investors please give me a call if I can help in anyway.
0 votes Thank Flag Link Wed Aug 20, 2008
Great question. I have served many people buying investment homes and the majority of them put 10% or more as a down payment. I would first visit with a local lender and talk to them about your plans and see what programs they have that will best suit you. Then contact a Realtor who specializes in the area that you want to invest in. Make sure that the Realtor you choose has plenty of experience in finding the right investment home. There are some good deals out there that will be great for long term investing. Let me know if I may be of service to you or if you have any more questions. You can reach me at 520-0900 or Ron@HomeRon.com
Web Reference: http://www.ronmersinger.com
0 votes Thank Flag Link Wed Aug 20, 2008
While it is technically possible, it is unlikely that you will find a lender willing to take that risk. You would have to qualify for the loan after considering your income MINUS your current mortgage payment. Most investors have 20% to put down.

The first place I would go would be a mortgage broker. They are licensed and experienced in this market, and can likely answer your question quickly and accurately. Good luck.
0 votes Thank Flag Link Wed Aug 20, 2008
One way would be to take an equity line on your property and use those funds as a down payment. There are not alot if any no money down loand for investment properties. You should start by contacting a trusted mortgage broker, stay away from internet companies. Ask to be prequailified so you can see what you can afford and what you will need for money down. Your other option is to find an owner financed or investor financed property where they will hold teh note for you. The thrird way is to find an investor who will gove you a disclosed second mortgage to use as your down payment. Good luck with your venture.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Aug 20, 2008
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