My wife and I are pretty handy around the house … so purchasing a fixer upper is natrually the kind of investment property that we would look for. We have found several potentially great properties in our area howerver, we haven’t made any offers because the traditional mortgage lender is the only kind of financing that we know of, and they usually want any where from 15% – 25% down. Does anyone know of creative financing techniqes that we could use?
Sarah
Comments
You can finance up to 100% of the property value. The only kicker is, the terms of your loan may not be as good. Higher interest rates or origination fees may abound. A simple way to figure whether or not this will be a good idea is to calculate your potential income and your expenses and initial sunk costs. This is a gross oversimplification and I would recommend that you speak to a qualified CPA before you make this leap. As usual, I recommend being very conservative in your estimates, assume a few worst case scenarios (ie no rental income between renters) and if the numbers still come out good… then go for it! 
Good luck!
**EDIT
I almost forgot to give you a specific loan type!! You can ask for an 80/20 loan. Where you get a traditional loan for 80% of the value with no PMI (private mortgage insurance), and get another 20% loan for the downpayment (this will be at a higher interest rate and you should pay this one down as quickly as possible). Ask your loan officer about this. They may also be able to offer you other alternatives. Good luck!
If you own your home, take a home equity loan out, or rent out your primary residence and move into the new fixer upper, the loan for the fixer upper would be a primary residence loan…lower interest rate than an investment property loan.
I refinanced my primary residence – took cash out — and then bought my new residence….am renting out the old house….
With a N/O/O Non Owner Occupied, you can possbily get 95 percent of the appraised value – 100 percent on a NOO is hard to get – I do underwrite for 2 companies that will do it, but a person needs good credit – Give me a call if you live in Indiana, Iowa, Michigan, Nebraska, Colorado, Wisconsin, Wymoing, Minnestota – if you live in the other states – I can send you to someone else (ok). Good Luck
Yes, but it depends on your Credit and Income we are always willing to look and we can train you as well so as you continue to invest there will be no mystery and you will be able to handle the backside of your business with ease.
Give me a Call, and I will show you how. No strings attached. Come see what we have to offer and you decide. We all need a break and this might be the one you are looking for.
You could try to get the owners of the property to sell to you on a lease option for say 2 years, and lets say that you pay 500 a month, with 500 down, then you would have control of the property and you could do your fix-ups or rent it out and collect the rent.( Be sure and include that in the offer that you can rent the property out) You should be able to get a 2nd mortgage to do your rehabs, (most banks would want to be in 1st position and the owner would hold the 2nd mortgage) If you have control of the property it makes thing alot easier, check out a mortgage broker they can usually find something. I currently use GMAC mortgage and they found a place that we only need 5% down on investment property. Good luck!
I can provide you non-owner financing all the way to 90% LTV. I work for a national bank and can lend in most states. On a 30 year fixed today the approximate rate would be 8.75% with a 1% loan fee and .500 in discount or 7.25 with a 1% loan fee and 2% in discount. This is an in-house A loan product, not off market or sub-prime.
Since you have no landlord experience, you would have to qualify for the entire payment regardless of anticipated rent. My toll fee number is 800971-4638, ext. 223.
We can do 100% on investment properties.
As others pointed out, there are investor lenders out there who do 100% financing. Another way is to partner up with someone who has money. If the profit margin is high enough, you can split it with the person who fronts you the cash.
Regards.
Call me I can help Taylor Mortgage Group 916-971-8444
Sure, there are lenders will lend 100%, and other ways like get a 2nd loan. I can help you on this. I work with a big direct lender/mortgage broker doing business in 48 states, and because the huge volumn of business we do, we get better rate than smaller brokers. We have over 200 loan programs to meet the needs of different situations, from good FICO score and good income and down payment, to poor FICO score and NO income (called stated income) and NO down payment, so I will be able to find the program which best fits your needs. Contact me at or 408-476-0455 and I can help you. Jessica
