Lending for Down Payment?

[Jared Cross]

I am seeking information regarding the possibility of obtaining down payment assistance when the property owner is also providing financing. Is such assistance typically available in these scenarios?

[Andrew Postell]

@Jared Cross hmmm, so this might be possible if this is an investment property you are trying to execute on.  There's limited information in your post so I'll try to cover some quick concepts here just in case:

1. Buying an investment property at 100% financing - this usually means we are bleeding money in cash flow.  Even at 80% financing, you are usually in a negative cash flow position.  So, at 100% financing...it would be really tough.

2. Profit in a flip - likewise, if I am buying at 100% financing and I am flipping the property, then where would my profit come from?  If I finance 100% of the property, I would lose money if I flipped.

3. Buying at a "deal" - if you are buying the property with immediate equity, and your downpayment will STILL allow to have equity to refinance, then we can use what is called a "transactional lender".  Those do exist.  They would want to either see you prequalified for the refinance step or at least see the numbers for the sale.

4. Primary Home - if this is a primary home purchase, then Downpayment Assistance Programs follow with FHA/VA/Fannie Mae loans. Meaning, you would have to get one of those to qualify for the DAP. Again, this is only with Primary Home stuff though.

Hope some of that helps but feel free to share some numbers or ask additional questions.  Thanks!