Updated almost 9 years ago on . Most recent reply
100% Real Estate Financing
I was sure there was no such thing as 100% Real Estate Financing. With the exception of Veterans and Rural Development under USDA, can anyone suggest a place for 100% Financing of anything?
A Bigger Pockets Advertiser answered the questions of 100% financing for me. However, I was asked to put 1% in Escrow on a Loan and that it would be returned to me at closing of the loan, which would be 100%, in that the 1% is returned at closing. Is their really some way to finance a property 100% or is this Lender ( I will not name) I found on Bigger Pockets pulling my leg?
Most Popular Reply
There are a few ways I used to buy with little or no money down when I had little or no money to put down.
One way was to have a seller finance part of their equity to help with my down payment. If I was buying a $100,000 property that required me to put 20% down, and they own it free and clear, sometimes they would be willing to close and only get 80,000 and do a second for me for the 20,000 with good terms.
Even if they didn't own it free and clear, as long as they had more equity than was required for me to put down, often they would finance some or all of my required payment
Another way is to raise the price. So raise the price from 100,000 to 120,000. The $20,000 back as a credit, now you close with very little down.
Third was to find hard money lender's or friends and family money to borrow that down payment.
Lenders don't really like either of these things because even though they are only loaning you 80% of the property value, they still want you to have a "skin in the game". But I've done all three of those things and have done them enough times to know each is possible