My parents, who own 6 rental townhouses, have never had a 100% commercial loan. They always put 20% down on a house and let it ride from there. Their credit score is very good...about 805 and have tried to get 100% financing mortgages in the past. Never have they got one.
Now, I am a college student which means I don't have any adequate income and a job. I have money saved up in my saving account but a bank lender is not going to give me a loan if i don't have a job, is that correct?
All of these required a job:
Subject to
Lease option
Owner financing
Commercial loan
The people here at BP are wonderful! Very responsive and helpful and hopefully you guys can offer me some sort of solution to this because this is the only thing keeping me back.
Neither of the first need a job. You will have to convince the seller you're a good risk. Owner financing is a broad term. Lease options and subject to are a form of owner finance. But so would a normal loan carried by the seller. Qualifications would depend on the seller.
If you have a good downpayment, 20% plus, have good reserves, and it's a good deal you might convince a commercial lender. Lack of income combined with no track record will make it tougher
I am not at all convinced that 100% commercial financing is dead. In fact, I don't believe that it is. Contrary to all the guru nonsense, commercial banking is now and has always been about relationships. Yes, you need excellent credit and a history of success in business to get a 100% commercial loan, but you also need a connection with a key person at the bank: a president; vice-president; chief loan officer, etc. Calling a big faceless national bank almost certainly isn't going to get you a 100% loan. But having an excellent relationship with Joe, the president of the local bank will.