Carthage, MS · Member since 2016 · 9 posts · 0 votes
Hi to all BP member out there this my first post on BP, So i am wondering is any lender out there do any unlimited mortgage finances on deals if you did have the down payment on the deal. Two all that will reply will be appreciation.
@Eric Greenwood do you mean an unlimited number of mortgages? If that is what you meant then here's the scoop: Conventional lending will limit you to 10 mortgages in your personal name. You can certainly have 10 in your name and 10 in your spouses name. A portfolio loan is a different loan type that is governed by the bank and not subject to conventional lending rules. Porfolio loans allow you to get more than 10 mortgages. Is this the type of information you were looking for?
I know that no financial institution is going to do 100% financing. I seriously doubt that you will find a stranger to do ir either. So banks and hard money are out. This leaves you with a private loan from friends or family. The only other possibility would be partnering with someone, but if they bring the cash, how would contribute to the partnership?
@Eric Greenwood do you mean an unlimited number of mortgages? If that is what you meant then here's the scoop: Conventional lending will limit you to 10 mortgages in your personal name. You can certainly have 10 in your name and 10 in your spouses name. A portfolio loan is a different loan type that is governed by the bank and not subject to conventional lending rules. Porfolio loans allow you to get more than 10 mortgages. Is this the type of information you were looking for?
Yes, there are hard money lenders that will give you 100% financing if there's enough equity in the deal. What they do is the lend against the ARV and not the current value. So if you have a property that is selling for $60,000 and needs $20,000 in rehab and will have an ARV of $140,000, you will have lenders that will lend 70% of the ARV, up to the total purchase price and rehab costs. Some may even include your closing costs and out of pocket costs, and even out money into a reserve account to cover your holding costs. In this example, the deal is so rich that 70% of $140,000 is $98,000, which covers the purchase, the rehab, and leaves $18,000 on the table.
The thing most people don't understand is that hard money lenders are all about the deal, and if the deal makes good money, they'll put money into the deal. 100% financing is going to cost you, but there isn't anything like an infinite ROI because you didn't put any money into the deal.