What kind of loan should I get for 40k?

Question

I have a potential deal on the table and I need 40k to make the down payment. My credit score is plenty fine otherwise to secure a 30-yr conventional loan. Is a hard money loan the way to go?

Joseph Larrew · Answer

Thanks John, I appreciate the info. I'll give it a look.

Dave Skow · Answer

@Joseph Larrew- a  hard money loan for the  down payment likely wont be acceptable ...check with the lender you are using for the 30 yr fixed loan   2)  fyi   gifted  funds  are normally not allowed  for   inv property  purchases   3)  if the  down payment funds are  borrowed  - the main lender  will normally   require that the  down payment loan is  secured by some other asset  ( another property /  car / assets )  and  also  they will factor a  payment into the qualifying ratios    4) maybe a 401K loan ?    or a  heloc on another  proeprty you own ?  Good luck

John O'Leary · Answer

@Joseph Larrew Most Hard Money lenders will require a down payment between 10-15% of the purchase price. There are some options for 100% if you own a Home Vestors franchise, or are associated with certain masterminds. I would look for lenders who might offer transactional financing for the down payment (Avoid paying upfront for any services), or private money options. If you have the deal under contract you might present it at a local REIA meeting to see if anyone is willing to JV on it.There are also plenty of great lenders in the vendor section under "Build Your Team" here on Bigger Pockets. Good Luck!