Is it possible to get 80% LTV on a Triplex Investment Property?

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Is it possible to get 80% LTV on a Triplex Investment Property?

Lee Mast
Rental Property Investor · Fort Collins Colorado · Member since 2019 · 30 posts · 24 votes

My previous post got deleted... apparently I worded something wrong that made this look like an advertisement or solicitation so... trying again. Am I on a fruitless search to find 80% LTV for a TriPlex?

Thanks!

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Eric Veronica
Lender · Cleveland, OH · Member since 2011 · 588 posts · 438 votes
6y

@Lee Mast You are correct. 80% LTV on a 2-4 unit investment property is outside of guidelines for Fannie/Conventional. Not really sure where everyone else is getting their information. The only option you have is finding bank who will offer some type of portfolio loan.

There are about 500 posts like this on BP and I rarely see anyone provide actual names.  Usually the answers are   "Call local banks and credit unions"   
Have you considered posting specifically in the state specific forum?  Are you part of a local real estate investor group?  Are there any realtor "investment property experts" in your area who might be able to provide you with a legit referral?

In my humble opinion these routes are much more refined ways to search than just randomly cold calling banks.  


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  • Matt CrusinberryPro Member
    Hollidaysburg, PA · Member since 2015 · 327 posts · 350 votes
    6y

    @Lee Mast, No, this should not be a fruitless pursuit. There are a lot of banks that are offering 80% LTV's on residential properties at this time. I suggest you continue with the smaller institutions, to include the credit unions and such. Good luck!

    1Reply
  • Lee Mast
    OP
    Rental Property Investor · Fort Collins Colorado · Member since 2019 · 30 posts · 24 votes
    6y

    Thanks Matt, will do. The issue I seem to be having is with the TriPlex. Everyone says they can do 80 LTV on single family not Triplex. But ... I am not one to give up!

    1Reply
  • Craig Jeppesen
    Rental Property Investor · Chubbuck, ID · Member since 2018 · 532 posts · 466 votes
    6y

    Yes, many even do 15% down and a few do 10% down.

    0Reply
  • Lee Mast
    OP
    Rental Property Investor · Fort Collins Colorado · Member since 2019 · 30 posts · 24 votes
    6y

    @Craig Jeppesen 15% or 10% on an investment property TriPlex? Can you send me some names of banks I can follow up on? Thanks!

    2Reply
  • Craig Jeppesen
    Rental Property Investor · Chubbuck, ID · Member since 2018 · 532 posts · 466 votes
    6y

    Anyone that sells to Fannie Mae.

    0Reply
  • Eric Veronica
    Lender · Cleveland, OH · Member since 2011 · 588 posts · 438 votes
    6y

    @Lee Mast You are correct. 80% LTV on a 2-4 unit investment property is outside of guidelines for Fannie/Conventional. Not really sure where everyone else is getting their information. The only option you have is finding bank who will offer some type of portfolio loan.

    There are about 500 posts like this on BP and I rarely see anyone provide actual names.  Usually the answers are   "Call local banks and credit unions"   
    Have you considered posting specifically in the state specific forum?  Are you part of a local real estate investor group?  Are there any realtor "investment property experts" in your area who might be able to provide you with a legit referral?

    In my humble opinion these routes are much more refined ways to search than just randomly cold calling banks.  


    2Reply
  • Martin Pacheco
    Lender · Irvine, CA · Member since 2019 · 34 posts · 7 votes
    6y

    @Lee Mast I would consult with a PML or a HML as they can help you with purchase.

    0Reply
  • Michael Ablan
    Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Lee Mast - Small local banks, with commerical lending departments. I get 80% LTV all day with these sorts of banks. They may initially only offer 75%, but I've found most are allowed to do 80% to earn the business of a client.

    0Reply
  • Michael Henry
    Rental Property Investor · Palm Bay, FL · Member since 2019 · 75 posts · 53 votes
    6y

    @Lee Mast

    Straightline funding will do 80% LTV on duplex / triplex / quad. I've used them before, but you will pay a premium on interest.

    0Reply
  • Lee Mast
    OP
    Rental Property Investor · Fort Collins Colorado · Member since 2019 · 30 posts · 24 votes
    6y
    Originally posted by @Michael Ablan:

    @Lee Mast - Small local banks, with commerical lending departments. I get 80% LTV all day with these sorts of banks. They may initially only offer 75%, but I've found most are allowed to do 80% to earn the business of a client.

    Michael, Thanks for that insite... I have found a couple banks now that will do 80% LTV so maybe I will use that as leverage on my local bank. No reason they shouldn't... I only own one property, have no other debt and a great credit score. Negotiate!!!

    0Reply
  • Account Closed
    Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    @Eric Veronica

    I can't speak for others, but I usually advise folks to call small community/local banks for this simple reason...I have VERY solid relationships with my lenders and brokers. The last thing I want to do is refer someone who could potentially butt heads with them and therefore jeopardize my reputation...I've seen it happen.

    But to the original question, yes 80% is out there with portfolio loans. I've done quite a few this past year...albeit I had to pay points to do so.

    2Reply
  • Eric Veronica
    Lender · Cleveland, OH · Member since 2011 · 588 posts · 438 votes
    6y

    @Account Closed  I can understand what you are saying but I guess I have a different take.  As a mortgage loan officer I live off of referrals from past customers. I have had situations where past customers have referred me clients who are unqualified, or pushy or rude. Even in those situations I am incredibly grateful when my name is passed on and I cant understand why anyone in real estate would not want their name mentioned. 

    1Reply
  • Matt CrusinberryPro Member
    Hollidaysburg, PA · Member since 2015 · 327 posts · 350 votes
    6y

    @Eric Veronica, I am amazed that you're not able to do 80% LTV. S & T Bank or Reliance both will do 80% LTV and 80% on cash out refi (yes, portfolio). I hope this helps when you're lending against these institutions. 75% would fall within our strategy, as we don't take out that much, but being able to is nice. Also, please feel free to reach out, and I can link you up directly with the personnel that has given us several loans on our properties. Good luck to both of you!

    1Reply
  • Eric Veronica
    Lender · Cleveland, OH · Member since 2011 · 588 posts · 438 votes
    6y

    @Matt Crusinberry I never like to speak for what other lending institutions can or cannot do because I truly do not know. What I can say is that conventional/Fannie/Freddie loans will not allow 80% LTV On 2-4 unit investment properties (unless there is some special exception program that I am not familiar with)

    If the banks that you are mentioning can offer 80% on 2-4 investment  they must have a pretty competitive portfolio loan program.  Sounds like you have done your research and found a couple aggressive lenders!

    1Reply
  • John Armando
    Dartmouth, MA · Member since 2016 · 40 posts · 10 votes
    6y

    @Lee Mast absolutely, as mentioned above call every bank you can in your area. And if one doesn't work on your first deal their terms and risk may change with time. Have 1 property with a portfolio Loan at 20% LTV, and they said they could do 2 for me total down the line. 3 months later for a second multi-family, they had changed their risk tolerance and could not do the 80% LTV, but I was readily able to go back to a different bank from my initial round of calls to get another 20% LTV loan, they are out there.

    0Reply
  • Nghi Le
    Investor / Lender · Seattle, WA · Member since 2014 · 1k+ posts · 730 votes
    6y

    A conventional lender will not do 80% LTV on a triplex. A commercial lender might, as long as the cashflow/DSCR is high enough; they look for different metrics than DTI.

    Never seen 10-15% down on a triplex, outside of hard/private money, but that's more on a value-add property where there's still a large enough margin/LTV on the ARV.

    0Reply
  • Matty Foley
    Lender · Frederick/Montgomery County, MD · Member since 2019 · 56 posts · 46 votes
    6y

    @Lee Mast I see many conflicting responses, but here is your answer: Yes it is possible to get 80% LTV but there are many factors to consider. All of the Community Banks I know (and I've worked for a few) set internal LTV limits at 75% for investment properties (Triplex or not). 80% would be a policy exception, which Banks try to avoid as much possible; mostly because loans with policy exceptions will be looked at with more scrutiny by the examiners. Higher LTV also = higher risk. With that said, I've certainly done my share at 80%. *In my personal experience, it always helps if you can give something in return to help justify the higher LTV. That may be bringing over you entire deposit relationship to the bank (community banks lifeblood is deposits to find loans), or taking less favorable terms elsewhere, such as a shorter amortization, higher interest rate, or higher origination fee. Another consideration is; if you are a very strong borrower, its likely the Bank may have no issue with 80% LTV because they will want you as a customer. To summarize, it is possible but you may have to shop around a bit - and Loan terms can always be negotiated, so be willing to give a little in order to get something in return.

    1Reply
  • Lee Mast
    OP
    Rental Property Investor · Fort Collins Colorado · Member since 2019 · 30 posts · 24 votes
    6y
    Originally posted by @Matty Foley:

    @Lee Mast I see many conflicting responses, but here is your answer: Yes it is possible to get 80% LTV but there are many factors to consider. All of the Community Banks I know (and I've worked for a few) set internal LTV limits at 75% for investment properties (Triplex or not). 80% would be a policy exception, which Banks try to avoid as much possible; mostly because loans with policy exceptions will be looked at with more scrutiny by the examiners. Higher LTV also = higher risk. With that said, I've certainly done my share at 80%. *In my personal experience, it always helps if you can give something in return to help justify the higher LTV. That may be bringing over you entire deposit relationship to the bank (community banks lifeblood is deposits to find loans), or taking less favorable terms elsewhere, such as a shorter amortization, higher interest rate, or higher origination fee. Another consideration is; if you are a very strong borrower, its likely the Bank may have no issue with 80% LTV because they will want you as a customer. To summarize, it is possible but you may have to shop around a bit - and Loan terms can always be negotiated, so be willing to give a little in order to get something in return.

     Thanks Matt for that advice!

    -Lee 

    0Reply
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