Anyone have suggestions for investor friendly lenders in Cleveland? I am having trouble getting a 20% downpayment for a duplex (most lenders I have talked through will only do 20% for single families, and want 25% for duplexes/triplexes/quads). I have mostly gone through the big mortgage companies, and have only had some limited success (most have very high rates if they drop the downpayment to 20%). I plan on buying more properties down the road, and would like to build some relationships with local lenders. Any suggestions would be greatly appreciated.
I’ve been told capital one does 20 percent down on duplexes but it goes up to 25 percent for triplexes and quads
North Coast Commercial Group
I have completed several transactions with them YTD. Highly recommend.
Those banks that follow Freddie and Fannie will require 25% down for MF (under 4units) and 20% for SFR
It's 5% difference, what's the big issue?
The 5% in not a huge deal at the end of the day, but based on my rehab budget it could make the difference between financing the repairs with all cash and having to take out a small HELOC, so my preference is 20% down. I am debating on doing a cash out refinance in a year depending on how it appraises after repairs. Am I better off with a 10% downpayment with a 6%+ APR? I did talk to a lender that was able to do something more along those lines. My rents should bring in between $2,100 to $2,300 per month after repairs. I am buying the house for $130,000, and the ARV should be over $200k, so I would cash flow pretty well in either scenario. My goal is buy another similar type of property once this project is completed.
Seconded to North Coast Commercial Group. Just did a deal funded with them and they were easy to work with.
Timothy Murphy III, Real Estate Agent in OH (#SAL.2016005240)
@Brian Gallagher Wells Fargo will do 15% down on up to 4 SFR.
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