Financing Multifamily Down Payment
Hello BP community. Hope the best for everyone in 2023! I have a multifamily property for sale that was sent to me and it requires traditional financing. I am looking for financing for the downpayment which is about 100K. What is your best advice for finding a good lender with good terms that provides this type of service etc.?
#2 Creative Real Estate Financing Contributor
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- Dallas, TX
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#2 Creative Real Estate Financing Contributor
- Lender
- Dallas, TX
@Brandon Grennan Conventional financing does NOT allow for borrowing funds for a down payment unless it the borrowing is secured by your asset like another property or 401k loan. So, if you do not have the required down payment and any reserves required you would need to take on a partner that has the funds or "season" the funds. This means the proceeds of the loan would need to be in your bank account for at least two bank statement cycles. That way the funds are just yours, and you do not have to source them. Of course you would want to be sure what ever loan you took on did not push your debt to income ratio over the limit.
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Jay thanks a ton! I really appreciate your guidance. Sounds like private money is the best option. Have a great day!
