Is it possible to only put down 10%

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Is it possible to only put down 10%

Dovi Schwartz

Rental Property Investor · Brooklyn, NY · Member since 2020 · 30 posts · 5 votes

When buying a house or a property is it possible to only have 10% to put down is there any such thing

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Diana T.

Rental Property Investor · Shelton, CT · Member since 2012 · 92 posts · 176 votes

@Marina Feldberg

Yes, pmi will apply. I don’t know if it’s a strict guideline.... But I’ve seen/ heard atleast 50-100 miles....

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Kirk R.
Peoria, IL · Member since 2013 · 967 posts · 383 votes
6y
Need lots more information/specifics imo to get a very good answer.
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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
6y
Yes, if you're buying through seller financing
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Dovi Schwartz
OP
Rental Property Investor · Brooklyn, NY · Member since 2020 · 30 posts · 5 votes
6y
@Kirk R. Hey if I’d like to buy a property let’s see in Orlando Florida for $158,000 I don’t we have $18,000 is. That workable
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Kirk R.
Peoria, IL · Member since 2013 · 967 posts · 383 votes
6y
assuming investment non Owner Occupied? I would call a banker cause it will be pretty specific to your credit score, dti, w-2, assets etc. etc. & probably vary banker to banker. Current environment banking/banks seem to be changing lending requirements hourly :) But if you're serious, I'd take the time to call at least one banker.
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Stone Saathoff
Investor · San Antonio, TX · Member since 2019 · 576 posts · 307 votes
6y
If you're investing in a property for fix & flip you can definitely get away with being somewhere around 10% down on the total project cost with a hard money lender. For rentals it's a different story and I would suggest you to consult with your bank and also a few hard money lenders if you are looking at distressed properties that need work. If you need access to any lenders in the San Antonio, TX area feel free to message or call me I work with several.
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Shawn McCormickPro Member
Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
6y
Hi @Dovi Schwartz. Need more information. Is this strictly for an investment property? If it is a second home/investment typically lenders will look for 20-30% but there are a lot of variables that they would look at.
If this is a primary residence for you that you will live in, then yes of course. USDA and VA loans are both 0% down loans, FHA is 3.5% down and conventional can start at 3%-20% (lots of programs inside those types, like the homestyle loan etc)
Also if this is an investment home, you could negotiate with the seller to finance the note or take it 'subject to' with little to zero down also.
I'm in Orlando and would be happy to discuss this more and hook you up with some lenders that know this market and could give you some guidance.
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Dovi Schwartz
OP
Rental Property Investor · Brooklyn, NY · Member since 2020 · 30 posts · 5 votes
6y
@Stone Saathoff
What are the Percentage of the hard money loan is
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Ian McIlnay
New to Real Estate · Missoula, MT · Member since 2018 · 4 posts · 1 vote
6y
@Dovi Schwartz
It is possible for you to invest and not have to put 20% down on a property. I’m currently new to real estate investing myself but I’m already looking at getting potentially financed through a bank on a conventional loan that is willing to do two separate loans for me with a 3% down payment on the house and 5% for a construction loan. Even though the housing market is currently quite high, the amount of money available right now is still high as well even amongst all the turmoil with COVID-19. I would recommend trying to talk to a local bank and see what types of financing they are willing to offer. Also if you are able to negotiate price of an investment property then that’s where you’ll make most of your money is in the initial purchase. If it needs some work and you get some quotes from a few general contractors then you can also use that itemized list of labor and materials on the property and refinance it out through a bank to force some appreciation of your asset.
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Diana T.
Rental Property Investor · Shelton, CT · Member since 2012 · 92 posts · 176 votes
6y
@Dov Schoenbrun
You can typically get away with it if it is a “vacation” home and it’s within a certain distance of your primary residence.
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Diana T.
Rental Property Investor · Shelton, CT · Member since 2012 · 92 posts · 176 votes
6y
@Diana T.
Sorry- should say a certain distance from your primary
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Ian McIlnay
New to Real Estate · Missoula, MT · Member since 2018 · 4 posts · 1 vote
6y
@Dovi Schwartz
To answer your question about hard money lenders, that varies from each one and your assets, finances will affect their rates too. But typically I have found that hard money will be lent with 1-3 points on the loan and with 7-12% interest for anywhere from 6-12 months before you need to pay it back.
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Twana RasoulBusiness Member
Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
6y
@Dov Schoenbrun yes On a single family residence that is owner occupied.
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Roger Hefner
Yuma, AZ · Member since 2015 · 140 posts · 137 votes
6y
@Dov Schoenbrun yes
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Jerryll Noorden
Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
6y
You can put 1 dollar down if you wanted to and the seller is OK with it.
It is all between the people included in the transaction. If they all agree you are fine.
Now that said... if you are dealing with banks and loans... well now the people included in the transaction will include the bank.. and they are not likely going to bend their rules.
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Marina Feldberg
Brooklyn, NY · Member since 2019 · 22 posts · 4 votes
6y
@Diana T. What is the "distance" that the vacation home has to be to quialify for the 10% down? Also is PMI going to be charged in such a case?
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Diana T.
Rental Property Investor · Shelton, CT · Member since 2012 · 92 posts · 176 votes
6y
@Marina Feldberg
Yes, pmi will apply. I don’t know if it’s a strict guideline.... But I’ve seen/ heard atleast 50-100 miles....
1 Reply
Marina Feldberg
Brooklyn, NY · Member since 2019 · 22 posts · 4 votes
6y
@Diana T. Thank you for your response. Is there a way to get out of PMI if not does it stay untill 20% equity is reached?
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Diana T.
Rental Property Investor · Shelton, CT · Member since 2012 · 92 posts · 176 votes
6y
@Marina Feldberg
Those answers I do not have :) sorry.
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Ian McIlnay
New to Real Estate · Missoula, MT · Member since 2018 · 4 posts · 1 vote
6y
@Marina Feldberg

There are 2 ways that I know to get out of a PMI. Lenders are required to drop PMI when a mortgage's LTV ratio reaches 78% through a combination of principal reduction on the mortgage and home-price appreciation. If part of the reduction in the LTV ratio is due to home-price appreciation, keep in mind that you will have to pay for a new appraisal in order to verify the amount of appreciation.

An alternative to paying PMI is to use a second mortgage or what's known as a piggyback loan. Here is how it works: You obtain a first mortgage with an amount equal to 80% of the home value, thereby avoiding PMI, and then take out a second mortgage with an amount equal to the sale price of the home, minus the amount of the down payment and the amount of the first mortgage.
As an example, buying costs $300,000 for a house, you would take a first mortgage for $240,000, make a $30,000 down payment and get a second mortgage for $30,000. This eliminates the need to pay PMI because the LTV ratio of the first mortgage is 80%
The downside of using a piggy-back loan would be that the second loan will more than likely have a higher interest rate than the first. One of the main keys here is how quickly the value of the home will appreciate.

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Steven Lowe
Real Estate Agent · Scottsdale, AZ · Member since 2019 · 448 posts · 320 votes
6y
Originally posted by @Dovi Schwartz:
When buying a house or a property is it possible to only have 10% to put down is there any such thing

Yes but there are less available ways to do this now that banks are requiring bigger down payments.
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Bill Goodland
Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
6y
@Dov Schoenbrun with Fannie/freddie conventional financing on an investment property? No. On an owner occupied loan? Yes. Is also possible with private/hard money or seller financing where you can essentially be as creative as you want
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Marina Feldberg
Brooklyn, NY · Member since 2019 · 22 posts · 4 votes
6y
@Ian McIlnay Thank you for your input!
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Zach GringPro Member
Realtor · Saint Charles, IL · Member since 2020 · 126 posts · 101 votes
6y
@Dov Schoenbrun
I’m approved at a local bank for 5% down owner occupied investment property mf. So I guess it depends on what you’re looking for or doing specifically.
[email protected]630-373-2554
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Ryan A.
Walnut Creek, CA · Member since 2020 · 23 posts · 8 votes
6y
Yes. Not sure what your w-2 job is, but there is such thing that is called a “physician mortgage”. It will also work with other high paying professions.
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Dovi Schwartz
OP
Rental Property Investor · Brooklyn, NY · Member since 2020 · 30 posts · 5 votes
6y
@Diana T.
Hi I really like the advise you have been giving people I am only 15 and I have a few jobs in the summer and I only make around $2500 so I save it up the goal is I want to buy a property eventually recently I put $3000 into Stocks now since I’m stuck In quarantine I started to try to learn more about the real estate world I wanna know what tips you can give me and is it too early in my life to start thinking about this I want to ask you because no one in my family is really into real estate it’s just me and this is the path I want to take so I just wanna know what you can tell me I understand you’re really busy so whenever you have a chance
Thank you so much
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