Can I get a loan without a down payment?

8 Replies

Hello all,

I'm very new to real estate investing and this might be a silly question for most of you, but can I get a loan without a down payment? I'd like to purchase a multifamily home to rent out, but don't have enough money to put in a down payment. I do know that a VA loan could work, but I'm currently using that for the home I'm living in. Are there any other avenues out there?

Thanks everyone for your advice!

Jessica

100% Seller financing

20% seller financing - 80% bank loan

5% friend loan,  20% seller financing   75 % bank loan

Possibilities

Thanks. The seller financing option sounds interesting. I'll do some more research on that.

If its your personal residence go through fha as low as 3.5% down

Some first time home loan programs though various banks and the va program offer nothing down for personal properties.

@Jessica Mangal  

There are 3 options for 0% that I'm aware of. You've used up one with your VA loan.

0% Down:
NACA (https://www.naca.com)
VA Loan (http://benefits.va.gov/HOMELOANS/index.asp) Rural Development Loans (Renovations MAY be included)
(http://www.rurdev.usda.gov/HSF-About_Guaranteed_Loans.html)

Here are a few other low cost options.

3.5% Down
FHA (http://portal.hud.gov/hudportal/HUD/topics/buying_a_home)

3.5% AND Renovations
FHA 203k loan (http://portal.hud.gov/hudportal/HUD/program_offices/housing/sfh/203k)

5% Down
Homepath Owner Occupied

Wow! Thanks everyone for showing me all of these options. I'm definitely going to look into these.

Jessica

Some first time home loan programs though various banks and the va program offer nothing down for personal properties.

@Jessica Mangal   Most of the programs mentioned are for your personal residence. While it is possible to do no money down deals with seller financing or private lenders (friends family and associates) it is tough to do so without any track record.

Most lenders will not touch an investment deal with no money down in today's market.

An important question is why don't you have money to put down?  Real estate investing takes money. Even if you can buy with no money down you need cash reserves for repairs and unexpected expenses. The fact you haven't saved any money is one reason lenders will shy away from you. 

Your first step in real estate investing may be to get your personal finances in order. Cut our expenditures so that you can save money.

I don't want to discourage you but I do want you to have realistic expectations.

Medium crab1 copyNed Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/