East Hartford, CT · Member since 2017 · 18 posts · 6 votes
There is an off-market triplex in my local area that is completely rehabbed and fully rented out. I want to purchase it but I don’t have the 25% down payment to get a conventional loan (non-owner occupied). My creative solution is to use a private money lender to supply the down payment and then qualify for the conventional loan under my own credentials. Does any one know if there are any legal issues regarding this strategy?
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
5y
The two issues you will likely encounter are: 1) private lenders not being willing/excited to loan in 2nd position, and 2) the bank doing the 1st position loan is not going to allow you to borrow the down payment.