Who knows the best current investor loan programs?

Question

OK BPers. Who knows the best current investor loan programs for the least amount down? I wasn't really looking but I stumbled across another place today I am going to put an offer in on. Im guessing I pick it up around 700k. I have the cash but I'd prefer to keep it to deploy toward another project I'm working on. Does anything exist with 5-15% down that doesn't have a grossly inflated rate? I have met some incredibly helpful people here for financing with other properties so figured I'd return to the well.

Timothy Hero · Answer

Ehh.. "Investor friendly" loans typically means PML (private money lenders), and those companies demand 20-25% down.

Banks can offer lower amounts down, but they aren't exactly investor friendly, since they require a long history of consistent income, low DTI and certain credit demands.

Ian Whiteman · Answer

@Timothy Hero it is but Im also trying to purchase a personal residence at almost the same time and I am trying to maintain as much liquidity as possible. Unfortunately, 700k is a tough purchase price as you get so close to conventional limits. After putting 20% down it makes more sense to put down a little more and skirt the jumbo headaches.

@George Despotopoulos Thank you. I have good hard money relationships. This is not a rehab property so there is no reno work.

George Despotopoulos · Answer

@Ian Whiteman just to add to what Timothy said, private money lenders/hard money lenders will require 20%+. Pre-covid you may have found a hard money lender willing to do 10% - 15% down if they were also funding the reno but now that's pretty rare. Also, the rates for a product like that will be 9.5% - 11%. It's also a 12-18 month term.

15-30 yr term loans will definitely require at a minimum 25% down at that price point.

Timothy Hero · Answer

Is putting down 20-25% not an option?

Ian Whiteman · Answer

@Timothy Hero understood. Fortunately, I have all of those. Just looking for creative programs. I always find them but they seem to change like the wind.

Who knows the best current investor loan programs?

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