How to buy 4plex without paying the 75% down

Question

Hi BP,

I have maxed out my personal mortgage loans and I’m now required to pay the 75% down for any multi unit buildings (4plex). This is according to my loan person who has approved me for 2 home loans already.

Any advise on what I can do?

I live in Livermore, Ca and I’m planing to start growing my cash flow portfolio and would love to hear how to move forward.

I appreciate any advise/feed back.

Thank you.

Nick

Maurice Smith · Answer

i lucked up and closed on a triplex in tracy ...fha 3.5% down with an outstanding 2.6% rate  lol it was suppose to be owner occupied but how this covid is set up right now i dont think that will happen now..so basically was able to get another mf rental without having to drop 25%

Nick Amaya · Answer

@Salvatore Lentini

Thanks for your reply.

I’m curious to know who those companies might be.

I appreciate any recommendations.

Thanks

Nick Amaya · Answer

@Maurice Smith

I meant to reply sooner.

Yes, I’m looking at the Stockton, Manteca, Modesto, Merced area.

I have send few offers but I am realizing that there are lots of cash buyers in this field as well.

Jasmine H. · Answer

@Derek Harris I'm in the process of purchasing a 4plex in TX.  My lender originally told me I can put 15% down but once he started the loan process, he came back and said something about the regulations changing with either Fannie or Freddie and that the new regs require 20% for primary residence.  Is this not the case?

Tom S. · Answer

@Nick Amaya  You don't always have to have an LLC to apply for a commercial mortgage.  Almost all of mine are commercial, and I have the option of personal name or LLC.  You'll have to provide a personal guarantee.  I've worked with smaller local banks in my area and it's worked out really well.

Derek Harris · Answer

I would shop around and find a mortgage broker. If it's for an investment property, most medium to large institutions will require 25% down for 2-4 units. If you plan on owner occupying it, you can expect only having to bring 15% down. This is for investment properties that are going to be delivered to Fannie Mae. For local lenders, it's completely up to their guidelines.

Scott Anderson · Answer

Find a mortgage broker that can do a no doc loan for you. That’s the easiest way.

Salvatore Lentini · Answer

@Nick Amaya I’m assuming you mean 25% down and a 75% LTV?  Some of the lenders I work with for my portfolio will do 80%LTV.  No W2s or tax returns and they ONLY work with real estate investors.

Mary M. · Answer

Contact a commercial loan broker.