All Forum Posts by: Madeline Malinovsky

Hi Tanner - If you're looking into classic conventional financing, you're running into an issue bc of the minimum borrower contribution. For a conventional loan on an investment property, a borrower is required to come in with 15-20% down. There can be a seller carryback as well, but this would be after the borrower's contribution. Essentially, the combined loans on the home cannot be 100%, as this is high risk for default. I'd wager most hard money and Non QM lenders wouldn't like the idea of 100% financing on a property either without a contribution from the borrower since the borrower really has no stake in the game. 

I'm a lender! With FHA it needs to be a primary residence. Also for a 4-unit it needs to cashflow. This means the total rents on the property (for all 4 units) discounted to 75% per lending law need to be greater than your total PITIA payment. So to clarify, you cannot partner with someone unless you are living in it together. :)