Getting around the 20%

[Angelo Aponte]

Are there any strategies out there to buy properties to buy and hold without putting down 20% or getting an FHA loan?

[Jonathan Taylor]

@Angelo Aponte to clarify this strategy, fix and flip can lend up to 85% LTC or 70-75% ARV, for clean deals, youre looking at 10-15% down. Once complete and rented, you refi into a 30 yr Fixed DSCR loan.

DSCR loan, aka lite doc or business purpose loans, uses the rents you receive on the property and divided by the new loan PITI to receive a ratio. Simple math would be a PITI of 1,000 and rents of 1500. That would be a debt service cover ratio of 1.5. Basically, this property cash flows. FICO, experience, and LTV are also factors but this is the basis of the loan. No need for tax returns, Verification of Employment, or income. I have been through this loan as an investor myself and originate these loans all the time.