Creative Real Estate Financing

User Stats

4
Posts
0
Votes
Brandon Grennan
0
Votes |
4
Posts

Financing Multifamily Down Payment

Brandon Grennan
Posted Apr 18 2023, 13:07

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.?

User Stats

845
Posts
476
Votes
Jay Hurst#1 Bankers, Lenders, and Mortgage Brokers Contributor
  • Lender
  • Dallas, TX
476
Votes |
845
Posts
Jay Hurst#1 Bankers, Lenders, and Mortgage Brokers Contributor
  • Lender
  • Dallas, TX
Replied Apr 18 2023, 15:18

@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.  

  • Lender Alabama (#69841), Virginia (#MLO-35815VA), Texas (#323441), Pennsylvania (#64778), Oregon (#323441), Louisiana (#323411), Iowa (#31166), Georgia (#55988), Florida (#LO40080), and Colorado (#100506224)

User Stats

4
Posts
0
Votes
Brandon Grennan
0
Votes |
4
Posts
Brandon Grennan
Replied Apr 19 2023, 04:03

Jay thanks a ton! I really appreciate your guidance. Sounds like private money is the best option. Have a great day!