Rental Property Investor · Tracy, CA · Member since 2019 · 29 posts · 7 votes
I know this is a silly question, but I can't seem to find the answer. When getting a conventional loan, is it possible to go above the max LTV to include the closing costs?
Example: The property is valued at $200k and the max LTV is 75%, or in other words, $150k. If the closing costs are $5k, there is no way to include the closing costs in the loan so that the loan is $155k right?
Again, I know this is silly but I want to make sure I'm not missing something. Thanks!
I know this is a silly question, but I can't seem to find the answer. When getting a conventional loan, is it possible to go above the max LTV to include the closing costs?
Example: The property is valued at $200k and the max LTV is 75%, or in other words, $150k. If the closing costs are $5k, there is no way to include the closing costs in the loan so that the loan is $155k right?
Again, I know this is silly but I want to make sure I'm not missing something. Thanks!
No. (and it's not a silly question) You should be asking because banking is simply a construct, it is not a law of physics. Things change and what we think is true about banking and finance is often very wrong. Not all ice cream is vanilla. Not all banks (or sources of money) are the same. I buy houses with no banks involved and little of my own money. How is that even possible? Because I don't limit myself to what bankers tell us. Follow the Spreadsheet.
Average Turnkey Cash Flow Per Door In Phoenix Metro Area No Bank Needed