BiggerPockets

There are hard money lenders that may be able to fund 100% of the purchase price if it less than 75% of the value. This may even work for rehab properties where you need to have rehab funds and base the loan off the after repaired value. You may need to bring in the closing cost though.

There are no conventional 100% loans though.

I might qualify for that program. I need to talk to a partner of mine who needs a house to see if he'll cover the payments. How soon can I close? There is a two story house needing $10,000 rehab that is selling for $169,900 and is valued at around $220,000. You mean I could borrow $179,000? Is that enough equity for the loan? Please get back to me!!

Terrible advise but here's some sound advice.

Be very careful of people telling you how to structure deals. Many loan officers in the mortgage industry will do this just so the deal can get done. Top 2 to watch out for.

1. Increasing your income more than what you really make
2. Saying the property will be a primary residence when the intent is to either rent it out or turn around and sell it. Generally, lenders will have you sign an occpancey affidavit that says you'll be residing in the property for up to a year.

Hi. I am posting another message to help me get more posts, and I have a question about a property. It is worth $220k-225k,and is selling for $169900. It's already rented for a year, and they have an option to purchase at the end of the lease. They will pay $600 a month + $9000 cash at closing. Can I make a deal like this pay using hard money? :roll:

Actually 203k is the option i was going to mention, but i have not experinced the harshness of getting the loan as stated. True it is score driven but the requirements are very much easier than hard money. The rates are better also. You will have to weigh the good and bad for yourself. Wait 4 weeks get good rates, wait 7 to 14 days get high rate. But there is a hard money lender that doesnt rely so heavily on your credit as much as if the deal makes dollars and $ense. Since i am not allowed to promote any business in this forum i will not say the company's name but if you are interested please PM me and we can have a dialogue. I am a builder/ investor not an artist, so i am not in the business of painting pictures of something that is not there.Thank you.

I say chances are slim.. one thing I have learned the hard way and read 100 times on this board in the last few days.. 50% is going to be expenses.. so your going to cut your rent in half, and only be able to pay your mortgage out of half of the rent.. anything left over is cash flow.. Recently moved from Tucson.. active member of the phoenix MLS and tucson MLS.. dont think theres MANY if ANY properties I EVER EVER found in those areas even not on the MLS that would cash flow with those terms. Thats why I moved to Texas! :lol:
-Scott

I thought I'd clarify a misunderstanding some of you seem to be prescribing to---the 203k is not credit score based (when you manually underwrite---such is true only when are going AU)...

Regards,

Scott Miller