LTV Financing

[Jeffery Lockwood]

Greetings,
This is my first post to BP. I have been following for months and have learned a ton. I have a question on LTV loans when buying real estate for long term hold. I have pre-approval from my banker on funding for investing. I have found a property that is actually a set of 4 houses and a duplex for 275K. they comp at 384K from 3 separate agents i work with. The properties all have tenant and cash flow for approximately 125/month per unit. My question is if I am taking a loan on these properties can I get a full financing option. I am buying these for less than the 80% LTV. Will I still be required to put 20% down or is the LTV based on the transaction and not the appraisal? Thanks in advance

[Darryl Dahlen]

Welcome to BP Jeff! Lenders these days use the purchase price to set the LTV. The primary reason for this is to make sure you are putting skin the game.

There are programs out there that can drastically reduce your down payment (FHA and USDA are two that come to mind), but I have no idea if you can use them for what you are looking to do.

Hopefully, someone else will post who can give more insight into those programs.

Best of luck though!