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Investment property loans - who has the most flexible down payments
Posted on 5/13/21 at 10:10 pm
Posted on 5/13/21 at 10:10 pm
Who out there is offering 5% down payments on investment properties? And what kind of an interest rates are you seeing now assuming credit over 760?
8
Posted on 5/13/21 at 10:41 pm to LSU in Frisco TX
Is it going to appraise a lot higher than what you are paying for it? If not, I'd be surprised if you get 5% down. I am waiting to close on some acreage west of Houston and have to put 15% down through Capital Farm Credit.
Posted on 5/14/21 at 5:50 am to LSU in Frisco TX
I am a banker in Baton Rouge and 15% down is the best I have seen locally. Let me know if you would be interested in discussing further
Posted on 5/14/21 at 7:33 am to LSU in Frisco TX
US Bank 10% down for a second home 3.25. If you use the second home at all you can get this loan then rent it the rest of the time.
This post was edited on 5/14/21 at 7:33 am
Posted on 5/14/21 at 7:59 am to LSU in Frisco TX
I am a loan officer and US Bank is one of our investors - Here is the matrix for 2nd Home investment for US Bank:
Min loan $548,251 Max loan $822,375 90%LTV Min credit score 640
Purchase Investment is:
Min Loan $548,251 Max Loan$822,375 80% LTV Min Credit score 720
Chase has a lower loan limit of $5000 min and max is $548,251. 90% LTV for 2nd home, 85% LTV for Investment
If you want to do it, I would recommend now. After June 1, investment rates are going to be a lot higher due to Fannie Mae regulations take effect.
Reach out if you want more info - I am not license in TX but I can connect you with someone who is
Min loan $548,251 Max loan $822,375 90%LTV Min credit score 640
Purchase Investment is:
Min Loan $548,251 Max Loan$822,375 80% LTV Min Credit score 720
Chase has a lower loan limit of $5000 min and max is $548,251. 90% LTV for 2nd home, 85% LTV for Investment
If you want to do it, I would recommend now. After June 1, investment rates are going to be a lot higher due to Fannie Mae regulations take effect.
Reach out if you want more info - I am not license in TX but I can connect you with someone who is
Posted on 5/14/21 at 9:03 am to LSU in Frisco TX
quote:
Who out there is offering 5% down payments on investment properties?
I know it's the money board but this is definitely a
question. I have never in all my years seen 5% down first mortgages for investment properties. Maybe you can get an 80-85% loan with a subordinate second at closing?
Posted on 5/14/21 at 10:25 am to LSU in Frisco TX
Could you do a cash-out refinance on your current house and use the cash-out to put towards the 15-20% needed for the investment property down payment?
Just an idea and I'm not in the mortgage business so someone who knows better, feel free to correct me if that can't be done for some reason.
Just an idea and I'm not in the mortgage business so someone who knows better, feel free to correct me if that can't be done for some reason.
Posted on 5/14/21 at 11:06 am to Tiger Prawn
Yes, this can be done. Before you go down that route, make sure the new DTI ratio will allow you to qualify for the investment property. The most frustrating thing is the rates on 2nd and investment properties - regulation is trying to open the market up for first time and primary home buyers, thus jacking up 2nd and investment rates
Posted on 5/15/21 at 1:24 am to TMFBB21
What kind of rate can one with good credit get on a 2nd home or investment property?
Posted on 5/15/21 at 5:29 am to LSU in Frisco TX
JMO and will probably be ignored but if you can only afford 5% down on an investment property (or second home) you probably don't want to buy that.
You are too vulnerable to depreciation, loss of rental income, or other financial pressures. The prices of properties now are far from the lowest they have been.
If you insist on doing this at least consider doing it through a LLC or other maneuver so all of your assets aren't at risk if something goes sideways.
You are too vulnerable to depreciation, loss of rental income, or other financial pressures. The prices of properties now are far from the lowest they have been.
If you insist on doing this at least consider doing it through a LLC or other maneuver so all of your assets aren't at risk if something goes sideways.
Posted on 5/15/21 at 7:46 am to LSU in Frisco TX
What feedback have you gotten for a rate? Last week I inquired locally in BR and got 5 for 20% and 4.5 for 25%, which was a gut punch. I paid off my other rental with them and have a perfect credit score…so I don’t think they’re screwing with me. But 5% seems ridiculous.
Posted on 5/15/21 at 10:49 am to lsuconnman
Generally speaking, there’s no way you can buy an investment property with 5% down and have it be cash flow positive after all your expenses. Generally speaking it just doesn’t work until 75, maybe 80% ltv
Posted on 5/15/21 at 10:01 pm to Im4datigers
Hi all, thanks for the feedback. I was quoted 5% down from Advanced Mortgage and Investment Co, but the property I am considering is in a state they don’t work in.
I can afford more than 5%, just didn’t want to tie up my cash if I didn’t have to.
I found someone in the state I need that will do 15%.
I can afford more than 5%, just didn’t want to tie up my cash if I didn’t have to.
I found someone in the state I need that will do 15%.
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