Financing (Seasoned Funds)

[Stefano Mannino]

When trying to obtain financing for an investment property , how do you get around not having seasoned funds in your account.

[Chris Mason]

Originally posted by @Stefano Mannino:

When trying to obtain financing for an investment property , how do you get around not having seasoned funds in your account.

 Ya know how people say you "can't" use borrowed funds for the down payment? But people use HELOCs all the time, which is clearly borrowed funds, so we know that's not the whole story.

The full story is that you can use secured borrowed funds, no seasoning, no hiding, nothing. Your partner can lend you the money, secured by some other real estate as a notarized/recorded official second mortgage to whatever LTV you wish (incl >100% CLTV).

- Loop in a RE lawyer if it's your first time.

- DTI still has to work. They called me a smart alec when I tried to do 0% to the rate and interest only payments (do the math on that one :P ), so now I do 5% i/o.

- No/minimal overlays investor friendly lender will be required. 

- Mortgage lenders are not expected to source where they got their money from, so your partner's money can come from basically anywhere. Your partner / private mortgage lender also is not the borrower to the main lender, so none of the PATRIOT Act stuff applies.