90% conventional loan for Investment Non O/O

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90% conventional loan for Investment Non O/O

Chi Ta
Member since 2020 · 3 posts · 0 votes

Hey everyone, 

I was wondering if there are lenders currently lending at 90% for non owner occupied? Looking for conventional rates, purchase price is 300-350k

Looking to purchase 10 properties immediately, at 90%

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  • Adah N.
    Investor · Atlanta, GA · Member since 2020 · 294 posts · 142 votes
    5y

    @Chi Ta

    I called and emailed around lately. Did not find any, they all required 20%. Even hard money lenders that charge higher interest and 2-4 points want 20%

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  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    5y
    Originally posted by @Chi Ta:

    Hey everyone, 

    I was wondering if there are lenders currently lending at 90% for non owner occupied? Looking for conventional rates, purchase price is 300-350k

    Looking to purchase 10 properties immediately, at 90%

    You won't find any. It is a conforming guideline that NOO loans require 20% down for 1 unit and 25% down for 2-4 units. You can look for portfolio lenders (I have never seen any willing to do less down) but rates will be higher

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  • Bob Okenwa
    Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    @Chi Ta

    Fannie Mae guidelines state that the minimum down payment for a single unit investment property is 15% and 25% down for a 2-4 unit property.

    The lower the down payment, the higher the interest rate. You can try calling some local banks and credit unions and see what they have to offer, but I wouldn't expect to anyone to give you 90% LTV with low interest rates on an investment property.

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  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    5y

    No, but you can buy 4 MF at 25%, prob commercial 5 year. Residential only if you have the DTI to handle a million in debt.

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  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    5y

    10% down is for non owner occupied, but specifically it's for "Second Homes," not full-time traditional rental properties. 

    Single fam only, intent must not be traditional lease, you personally must go on vacation there once a year, and on a purchase transaction the subject property potential rental income cannot be "counted" -- you must have the day-job income to make it work. 

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  • Nick BelskyBusiness Member
    Residential and Commercial Broker · Member since 2021 · 1k+ posts · 704 votes
    5y

    @Chi Ta

    If $300-350k is the purchase price, what is the estimated ARV? Are you planning on doing any work to these or are they turn key? Buy and Hold? Fix and Flips? Etc...

    I have lenders who can do a blanket loan and possibly get all these properties in one loan and one closing, but not at conventional rates.  Depending on the properties, maybe even at 90% LTC.  Lots of variables with multiple props like this.

    Expecting to get this kind of deal at conventional rates will be your biggest hurdle for this one...

    Nick Belsky

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  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    5y
    Originally posted by @Chi Ta:

    Hey everyone, 

    I was wondering if there are lenders currently lending at 90% for non owner occupied? Looking for conventional rates, purchase price is 300-350k
    Looking to purchase 10 properties immediately, at 90%

    Chi

    This unicorn does not exist.  You're asking for higher than conventional loan to value, so the loan won't qualify for Fannie Mae/Freddie Mac financing.  That said, you won't get conventional rates.

    If the 10 properties you're buying total $350,000 on the high end, you're looking for a blanket loan on properties that average $35,000 per unit; also a unicorn that doesn't exist.

    Having said all of that, you MAY be able to persuade a LOCAL bank that the properties are in great shape and under valued by the seller and you are the person to take on this project, but you'll need more down.  Otherwise, they'll look at you as too light for the deal or under capitalized in case something goes wrong and something does go wrong.

    Stephanie

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