Personal Loan as Down Payment on an investment loan?

Question

Personal Loan as Down Payment on an investment loan? Is this something that is possible?

George Taylor · Answer

@Dom Jones Absolutely.. well sort of.. A lot of lenders don't wan't anything to do with this since you don't technically have any skin in the game but there are a lot out there that will accept it as long as it's from a trusted and vetted source. As a good baseline, you should make that personal loan for 25% of the total loan cost as a general rule of thumb.

George Taylor · Answer

@Dom Jones Absolutely.. A lot of lender don't wan't anything to do with this since you don't technically have any skin in the game but there are a lot out there that will accept it as long as it's from a trusted and vetted source. As a good baseline, you should make that personal loan for 25% of the total loan cost as a general rule of thumb.

Robert Uceda · Answer

I'm having the same issue on a loan application this past week. I applied and was told that because I earn now on contract labor as an addictions counselor $2000/month, the debt to income ratio is too high ... and the private lender told me I do not qualify for any loans for the moment, unless I were to pursue the hard $$ loan to finance the purchase of the house.   How much of my own money should I invest in a loan each month before they accept my loan? $1000 for 6 or 7 months each?? Thoughts?? :(

Dom Jones · Answer

Yeah i'm I hear what your saying. I'm going to give it a try I'll post at some point how things turn out.

Brent Coombs · Answer

@Dom Jones, my guess is it WON'T be as easy as George seems to be suggesting.

Any Lender worth their salt SHOULD be asking: who's this guy who wants to buy property with ZERO of his own dollars? And why should WE now take on 100% of the risk? And/or does his other Lender know that they'll be taking SECOND position?

ie. You'd BETTER have a provable track-record/income to back yourself up. Good luck...

Personal Loan as Down Payment on an investment loan?

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