Newbie Multi Family Mortgage question

[Dustin Karels]

This is my first post here and I’m just starting off learning about real estate investing.

I’ve been reading and listening to the BP podcasts.

My wife and I are looking to get into one or more multi-family properties in the Madison area.

My question around conventional financing is that I know loans can be for up to 80% LTV, so does that mean if we can find a good deal at 70/75 LTV could we get a loan for the full amount and only pay closing costs or would there still need to be a down payment of some kind?

I’m assuming there would be by wanted to ask.

Thanks!

[Chris Mason]

Originally posted by @Dustin Karels:

This is my first post here and I’m just starting off learning about real estate investing.

I’ve been reading and listening to the BP podcasts.

My wife and I are looking to get into one or more multi-family properties in the Madison area.

My question around conventional financing is that I know loans can be for up to 80% LTV, so does that mean if we can find a good deal at 70/75 LTV could we get a loan for the full amount and only pay closing costs or would there still need to be a down payment of some kind?

I’m assuming there would be by wanted to ask.

Thanks!

 Nope; lenders consider the value of the property to be the lesser of the contract price or appraised value.

On a refi, different story.