So I have been taxing my brain trying to find a creative way of financing my dream property or potential dream property(still looking for that Duplex that's the one). I am wondering if there are really any 100% financing loans out that are 30yr long with a good interest rate. If you all know of any please free to post your comment( Financing mean the amount of the house purchase, plus repairs).
I have not been aware of a program like you describe since 2007. Most lenders (big or small) want their borrowers to have some of their own money in the deal.
If you are going to live in the home and can qualify for a conventional loan this is a possibility. I have a loan program in Utah that allows for no money down.
If you do not qualify for conventional (bank) financing then your question has a very different answer:
I know it's really tough to be a borrower with no money and to see things from a lender's perspective. Why would the lender buy your whole home for you? They would be taking on ALL the risk! The minute things change for you or you lose a job, etc., you would bail on your payment and home - because, why not? You don't have any skin-in-the-game so you have nothing to lose.
If you find a hard-money lender offering 100% financing, they are either trying to get upfront fees from you and will never lend you money, or they will not have money to loan for long as their defaults rise.
If you aren't a Veteran, there is the possibility of USDA in Maryland. Near you, parts of Frederick, Washington, PG and Charles Counties have USDA eligible houses with 100% financing. Rates in the 3's for 30 year fixed with 640 or higher credit.
For HM, there are a few I work with that advertise that if the stars perfectly align and you have a high credit score and lots of experience. The rate/points are very HM'ish, though.
Check out the FHA 203(k). Not 100%, but pretty close. Keep in mind, it's very bureaucratic.
Also, if you find the killer deal with a ton of equity after rehab (like 50%) you may be able to find hard money lenders to put up all the cash. But this usually requires a track record.
I also know of a program through local bank that will do construction loan on existing construction with LTV's based on completed work. You have to qualify for the take out loan, but this may be an option. According to the lender, you can get into this one for as little as $500. PM me for details on this...
Thanow folks. I actually do have a good credit score so I hope that counts for something
Originally posted by @Carlann Mckenna:
Thanks folks. I actually do have a good credit score so I hope that counts for something
I don't know about where you live, but here in Utah there are a few different credit union/portfolio lenders out there who offer a first time home buyer 100% financing (or very close to it - 1% down payment). The interest rate here is in the high 4% range which is a premium compared to market rates on a 30 yr term but still a great deal for no money down. Check around the area for portfolio lenders.
Baltimore City has a number of homeowner incentives that you can combine with the FHA loan product on a 1-4 unit property. You might not hit 100%, but you'll be close. Check out www.livebaltimore.com.
I would look in to raising private capital. There's over 25 trillion dollars in retirement accounts. I never used a bank on an investment.
The days of 100% financing, from traditional or Hard money lenders, are pretty much gone, especially for investors. Your main options are
1) save up money
2) get a partner
3) find a private lender (family friends or associates)
The better the deal the easier it is to get creative. Go find a deal that is so good people are fighting to be part of it.
Thanks everyone. Hey Ned it was great to meet you in person.