Tried numerous attempts without 20% down, but need it in order to get loan. Any suggestions?

Question

Any help is awesome. I have pending a property with 2 separate houses on one parcel. 2 bd, 1bth, & separate garage + 1 bd, 1bth, & sep. garage. Asking $145,000. I have $10,000 in bank, $10,000 in stock market. 1. I have tried going FHA, but no comps in the area, 2. I have tried going USDA, can't because of the investment potential, tried going 3.5% down on conventional loan, but didn't get approved because of MI companies rules. Looking for some tips on what to do... Should I ask family and friends to loan to me with a decent pay back rate? I would like to live in one property & rent the other one out if it matters? Any suggestions help!

Jon Holdman · Answer

Personal loan is a loan from a bank based on your signature.  Those used to be called "signature loans", but I'm probably dating myself with that term.  Not too many banks still do those.  A credit card cash advance is sort of the equivalent.  But try credit unions and smaller banks, especially if you already have a relationship with one.  I have a personal line of credit with a credit union, but I've had accounts with them for over 30 years and have had this line of credit for over 20.  But they do still offer them.  They're not in you're area, though.

Account Closed · Answer

Ryan,

I would not invest in a property that is less than three bedrooms, 2 baths due to the limited type of renters.

If you are getting into to a property that is multi-unit to help pay your payment on the property I would look for a four-plex this is for rent and do seller financing or lease option.

There would be less risky, you may be able to get into the property without any money down and  if one tenant moves out you still have two others helping to pay the rent also it would give you time to build your down payment, it would allow you to lock in a price on the property and if you decide in the future not to complete the purchase you could sell it and make a profit but if the property does not go up in value and you decide not to buy you can walk away without any risk.

Good luck...

Marv Rousselow

Casey Kleinhenz · Answer

Some lenders in my area do 5% down mortgages. You could ask around for something similar.

Bill Robinson · Answer

Which peer lending program did your friend use?

Gulfield Jones · Answer

A friend of ours used a peer lending program to get the additional money he needed, I believe he only needed 10k too . He was funded pretty quickly and paid it back with taxes this year. Just an idea, good luck!

Ryan Woodward · Answer

Since I'm $10,000 -$12,000 short, I could potentially market this idea to a family member or friend then. Maybe that is a more viable option. Does anyone have any suggestions on selling points? (i.e. what is a fair interest % rate & way to guarantee their money)? I was thinking something like 6%-8% since that is better than many stock markets & bank rates?? Not sure about how to guarantee they get paid, maybe have them put a lien on the property? I plan on going through a local credit union for the main portion of the loan.

Ryan Woodward · Answer

Jon Holdman

You're, what, about $10K short with closing costs and prepaids? Can you get that from credit cards, selling something, friends and family, personal loan? Any suggestions or forms for marketing/suggesting a personal loan?

Ryan Woodward · Answer

Thanks Jon, I will research the owner occupied loan option to see if any of the three lenders I previously attempted to go through have this option...this way I can deflect a 4th credit report check, thank you!

Jon Holdman · Answer

You're, what, about $10K short with closing costs and prepaids?  Can you get that from credit cards, selling something, friends and family, personal loan?

Have you tried getting an OO loan with 10% down?  Seems like you have enough for that.

Tried numerous attempts without 20% down, but need it in order to get loan. Any suggestions?

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