Are there Down Payment Assistance Programs for Investors?

Question

I remember hearing about this on a podcast and I haven't been able to find any as of yet.

I'm looking to purchase Multifamily Properties and I was curious are there any down payment assistance programs or even down payment loans to help with the acquisition of the property?

Mike Hasson · Answer

There are so many options out there it'll make your head spin!

Since we can only give you general advice, it would be better to call 3 different TYPES of lenders to get an idea of your options. For example, perhaps explore some programs from:

-Hard/Private Money Lenders

-Local banks or credit unions

-National Bank/lenders

Find which of these types of lenders will match best with your goals, and then interview 3 more of THAT type of lender for even more options, and to fine-tune your plan. But keep in mind that for investment loans, what you're looking for probably won't be called "down payment assistance". Instead, you'll be looking for higher LTVs, interest-only terms, seller carryback, etc.

For example, if you got an interest only bridge loan that funded 80% of purchase and 100% of renovation, with a 20% carryback (aka the seller holds the note/seller financed), with a refi into a 30 year at year 1 once the property is stabilized - then you would essentially have gotten in with 0 down. Or you could bring in an equity partner for the 20% and it's out of their pocket instead of yours. There are infinite number of creative ways to structure down payment assistance, but I think step one may be to become well-versed in the investment financing terminology and strategies.

Eliott Elias · Answer

Yeah, tons. Private money & hard money. It's a lot easier to find money as an investor than a home buyer.