First time buyer looking for local banks to borrow

Fort Worth, Texas
First-Time Home Buyer
4yFollow

First time buyer looking for local banks to borrow

Kanjana Kanjina
Member since 2022 · 4 posts · 0 votes

Hello,

I'm new to real estate investing and looking to buy my first rental single family home. Can anyone recommend local banks in Fort Worth, TX that are willing to work with first time real estate investor with just 5-10% money down?

Thank you,

Kanjana

0Reply
14 views

10 Replies

Jump to latestLatest
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4y
    Quote from @Kanjana Kanjina:

    Hello,

    I'm new to real estate investing and looking to buy my first rental single family home. Can anyone recommend local banks in Fort Worth, TX that are willing to work with first time real estate investor with just 5-10% money down?

    Thank you,

    Kanjana


     Hey Kanjana, 

    5-10% down will be tough to find for an investment property. 

    Most will require at least 20-25% down. If you have a primary with enough equity you could do a Cash-out refinance or a HELOC to finance the rest of the purchase.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Kanjana Kanjina
    OP
    Member since 2022 · 4 posts · 0 votes
    4y

    Thank you so much for your response and suggestion. I do have over 50% equity on my primary home. 

    0Reply
  • Kanjana Kanjina
    OP
    Member since 2022 · 4 posts · 0 votes
    4y
    Quote from @Erik Estrada:
    Quote from @Kanjana Kanjina:

    Hello,

    I'm new to real estate investing and looking to buy my first rental single family home. Can anyone recommend local banks in Fort Worth, TX that are willing to work with first time real estate investor with just 5-10% money down?

    Thank you,

    Kanjana


     Hey Kanjana, 

    5-10% down will be tough to find for an investment property. 

    Most will require at least 20-25% down. If you have a primary with enough equity you could do a Cash-out refinance or a HELOC to finance the rest of the purchase.

    Thank you so much for your response and suggestion. I do have over 50% equity on my primary home. I currently have 15 year mortgage with less than 3% rate so I don't really want to refi my hose. Is 2nd mortgage better idea than taking out home equity loan? 

    Thank you,
    0Reply
  • Devin Ryan
    Lender · CT · Member since 2022 · 44 posts · 20 votes
    4y

    Hi Kanjana,

    5-10% will be difficult for an investment property. For a purchase of an investment property, generally 15-25% is required for most lenders. Personally, my team has 15% down, but the specific overlays can vary by lender. Being a first time real estate investor shouldn't be any issue. The process is virtually the same from purchasing your primary residence with slight exceptions! 

    0Reply
  • Alicia MarksPro Member
    Fort Worth, TX · Member since 2020 · 1k+ posts · 2k+ votes
    4y

    Agreed with what people have said about downpayment. If you're looking at conventional financing as an option, talk to @Andrew Postell.

    [email protected]Podcast Guest on Show #204
    0Reply
  • Stuart Chinworth
    Realtor · Lubbock, TX · Member since 2016 · 127 posts · 60 votes
    4y

    Hey @Kanjana Kanjina, I recently had client who was working with a local bank here in Granbury and was able to put 10% down on a property. So it is possible. However, he has a very established relationship with this bank and the terms are much different than conventional financing. I would personally budget 25% for a downpayment on conventional. You might be able to find something lower with less conventional financing but that is a whole different conversation. 

    0Reply
  • Kanjana Kanjina
    OP
    Member since 2022 · 4 posts · 0 votes
    4y
    Quote from @Stuart Chinworth:

    Hey @Kanjana Kanjina, I recently had client who was working with a local bank here in Granbury and was able to put 10% down on a property. So it is possible. However, he has a very established relationship with this bank and the terms are much different than conventional financing. I would personally budget 25% for a downpayment on conventional. You might be able to find something lower with less conventional financing but that is a whole different conversation. 


     Thanks Stuart for the response. It looks like I have to work on saving more money for down payment.

    0Reply
  • Stuart Chinworth
    Realtor · Lubbock, TX · Member since 2016 · 127 posts · 60 votes
    4y
    Quote from @Kanjana Kanjina:
    Quote from @Stuart Chinworth:

    Hey @Kanjana Kanjina, I recently had client who was working with a local bank here in Granbury and was able to put 10% down on a property. So it is possible. However, he has a very established relationship with this bank and the terms are much different than conventional financing. I would personally budget 25% for a downpayment on conventional. You might be able to find something lower with less conventional financing but that is a whole different conversation. 


     Thanks Stuart for the response. It looks like I have to work on saving more money for down payment.


     You are welcome. Keep in mind, you are only limited by your imagination and creativity. Sometimes you can partner up with someone who has more money than free time or find a seller financing opportunity. Keep saving but also keep exploring less conventional financing options. 

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    4y

    @Kanjana Kanjina...you will need a min down payment of 15% of the purchase price for a down payment on a SFH rental purchase

    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Happy to put you in touch with my lender! He is an investor as well 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free