How to buy rental condo with less than 20% DOWN?????

How to buy rental condo with less than 20% DOWN?????

Calumet City, IL · Member since 2014 · 312 posts · 49 votes

Hello all. I am currently looking to purchase my second rental property. It is a 2 bed 2 bath condo for $57K  The finance company that I got my 4-unit through says they will not do a mortgage below $50K and they would require 20% down since this will be another rental for me and not owner occupied. How can I get around this? Any ideas. Do anyone only do loans for 10% down?

http://www.realtor.com/realestateandhomes-detail/19547-Lake-Shore-Dr-Apt-2_Lynwood_IL_60411_M85477-65079?row=21

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Real Estate Investor · Mesa, AZ · Member since 2014 · 73 posts · 24 votes
11y
Originally posted by @Account Closed:

Jarrett,

Why don't you offer $62.5k for the condo and ask the seller for a $5.5k credit for closing costs and repairs? That should give you a $50k loan with 20% down. 

That would work if it appraises out.

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  • Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    11y

    Jarrett,

    Why don't you offer $62.5k for the condo and ask the seller for a $5.5k credit for closing costs and repairs? That should give you a $50k loan with 20% down. 

  • Real Estate Investor · Mesa, AZ · Member since 2014 · 73 posts · 24 votes
    11y
    Originally posted by @Account Closed:

    Jarrett,

    Why don't you offer $62.5k for the condo and ask the seller for a $5.5k credit for closing costs and repairs? That should give you a $50k loan with 20% down. 

    That would work if it appraises out.

  • Calumet City, IL · Member since 2014 · 312 posts · 49 votes
    11y
    Originally posted by @Account Closed:

    Jarrett,

    Why don't you offer $62.5k for the condo and ask the seller for a $5.5k credit for closing costs and repairs? That should give you a $50k loan with 20% down. 

     That is an idea. Let me run that by a couple of people. Thanks for your input.

  • Real Estate Lender · Newport, RI · Member since 2014 · 182 posts · 33 votes
    11y

    @Jarrett Harris 

    The max LTV on investment property's is 85%, and the max seller concessions is 2%

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