Real Estate Agent · Long Island, NY · Member since 2022 · 15 posts · 4 votes
I would like to purchase an investment in Monroe County, PA, I am looking in the sub 150K arena. I am a real estate agent in NY and CT and a new investor. I live in NY.
I keep running into the not lending to a rural areas and only lending to urban/suburban areas.
Hence my dilemma.
Scenario 1 - Borrow the down payment 10%, I qualify for the mortgage.
Scenario 2 - Borrow the entire amount.
Any references welcome or direction is welcome.
Thanks in advance.
I am thankful that BP has been such a wealth of knowledge, I have learned so much and am confident that I will be pointed in teh right direction.
Lender · Patterson, NY · Member since 2017 · 488 posts · 186 votes
4y
Not lending in "rural" areas is often a result of lack of comps in an area in order for hard money lending risk assessment. As an agent perhaps you can help your own cause in providing close-by comps yourself to the lender. Much success. Bob
Try talking to a local realtor and see how their clients are funding their purchases, maybe a local bank.
I suspect that this area will have higher than usual seller financing so that lack of lenders might turn out to be more a a feature rather than a bug.
If the sellers have existing mortgages ask if they will sell subject to. If you have not listened yet there is a great bigger pockets podcast that was "Bigger Pockets / Show Pace" that is the best podcast I have heard yet on buying with seller financing and subject to.
Try talking to a local realtor and see how their clients are funding their purchases, maybe a local bank.
I suspect that this area will have higher than usual seller financing so that lack of lenders might turn out to be more a a feature rather than a bug.
If the sellers have existing mortgages ask if they will sell subject to. If you have not listened yet there is a great bigger pockets podcast that was "Bigger Pockets / Show Pace" that is the best podcast I have heard yet on buying with seller financing and subject to.
Thanks Bob.
I have listened to that podcast and as my first rental am not willing to take the "Due on Sale" clause risk at this time. When my portfolio is bigger, I will give that a try.
I would live to do seller financing, it is tough to find whose willing to do that in this area.
While the no money down is no impossible, it still feels like a unicorn.