10% down investment property loans?

Question

Hey y'all, I'm sure this has been discussed already but I'm curious if anyone has any recommendations for lenders offering 10% down payment on an investment property in California? Thanks so much.

Chris Mason · Answer

Most direct answer, if you live in Tennessee and are buying a SFH, and are willing to personally come to California on vacation once a year (such as when the short term rental isn't occupied by others on vacation who are paying you for the privilege), 2nd homes can be acquired at 90% LTV.

Checklist here: https://selling-guide.fanniema...

But, for a traditional long term rental, if that is your intent in your heart of hearts when you sit across from the notary who will take your fingerprints, no there are not.

Chris Mason · Answer

"Rental property" there is understood to mean tenants traditional long term lease.

Next time you watch some Hallmark holiday Christmas movie and New England WASPS talk about "summering in the Hamptons," this is the type of mortgage. I don't know what a Hampton is or where it's at or why you would want to "summer" there (being that I'm a West Coast person), but I can tell you whoever owns it has a "second home" mortgage, and it's totally on the up-and-up that they rent it to other WASPS (other demographics too, this is just the demographic that is always portrayed on these horrible films that a certain person, whom I may or may not be in matrimony with, loves to watch every November through December) when they aren't using it.

Adrienne Green · Answer

@Chris Mason  that was the most enjoyable read I've had on BP in a while!

Matt "Roar" Gardner · Answer

@Wes Mccullar That'll be lender and situation dependent for sure -- I was able to get one classified as a second home that's just 20 miles from my primary residence; however that's definitely not always the case.  The general rule of thumb is 50 miles to justify it.   As a realtor and investor in the Destin to PCB area (which is about 50 miles apart), I've seen people justify purchasing in Destin and then in PCB.  It'll be much tougher to justify Grayton to Rosemary; however, every situation is different.  (i.e. if you buy a 2BR condo in Grayton and then a 8-bedroom house in Rosemary, we may be able to get that through underwriting.

Best of luck!

Wes Mccullar · Answer

How far apart do 2 markets need to be In order to qualify for the 10% down loan in both? Example, if you have a property you purchased in Destin for 10% down can you buy another in let’s say Santa Rosa, Rosemary beach, or Grayson utilizing the same option?

Thanks

Adam Roth · Answer

@Chris Mason Haha got it! Thanks so much for your help Chris!

Adam Roth · Answer

@Chris Mason Thanks Chris! Yes, in fact I plan on being there several times a year at least. Very interested in that loan program if I can AirBNB with the property. I see on the checklist you sent it says "must not be rental property or a timeshare arrangement"?

Reid Chauvin · Answer

Well put, @Chris Mason. I don't know that you're going to find anything better than 15% down on a true investment property, @Adam Roth. At least, not at conventional rates/terms.

Lien Vuong · Answer

@Chris Mason has the right ideas!

10% down investment property loans?

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