Financing SFR Non Owner Occupied

5 Replies

I'm under contract for a SFR with a permitted Rec room in the back. The total income equates to a 11% cash on cash return. We are planning on syndicating it however my lenders are telling me that the down payment monies must be seasoned for at least 2 months. Anyone know any way around this other than hard money? Thanks!

@Jared K. ,

I might be showing a little ignorance, but I'm confused about what you mean when you say you're hoping to syndicate it.  Can you explain?

To be clear, what is the financial structure of the deal 100% cash to purchase and you're looking for an immediate refi, or something else?

Originally posted by @Jared K. :

I'm under contract for a SFR with a permitted Rec room in the back. The total income equates to a 11% cash on cash return. We are planning on syndicating it however my lenders are telling me that the down payment monies must be seasoned for at least 2 months. Anyone know any way around this other than hard money? Thanks!

 Jared, 

You get the passive investors you're syndicating from to be a partner on the loan then you would not have a seasoning issue assuming their funds have been in "their," accounts for 2+ months or are from verified sources.

They probably want it to be seasoned two months because you'd be getting money from these partners into your account and they want to source these funds.

Albert Bui, Lender in CA (#345453), WA (#345453), TX (#345453), and TN (#345453)
949-514-5106

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Thank you everyone for your post responses.  What I was able to determine was yes, Fannie and Freddie are requiring seasoned funds for the downpayment on 4 or less units. I usually play in the commercial syndication space so this was new to me. I learned that we were not able to borrow the downpayment - that the source of the funds had to be in the borrower's account for a min. of 2 months.  One of the parters could however fund the downpayment and then the partnership could reimburse him after we close.  Hope this helps to clarify.  Thanks!

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