Seller Funded Down Payment for Investment Property Loan

Specialist · Mountain View · Member since 2020 · 12 posts · 4 votes

Looking for insight on how to reduce the out of pocket cost for an income property loan. My initial thought was a seller funded down payment, but I am not sure if that is permitted for an income property loan.

Any advice or suggestions is welcome!

Thanks,
Griffin

0 Reply

22 views

2 Replies

Jump to latestLatest

Sort by

Will FraserPro Member
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
5y
Hi @Griffin Doninger, that may depend on what you mean by "income property loan." You can get a Conventional Loan for an income property, and that has to conform to the mortgage underwriting guidelines of whoever is backing the loan (i.e. Fannie Mae, Freddie Mac, etc).
You can also use a commercial loan to purchase an income producing investment property. These usually stay "on the books" of the bank that makes the loan. These have to conform to what the bank is comfortable with, which is usually a wider berth.
In general you can usually find a way for the seller to "carry back" a portion of the downpayment. It's kind of a shell game a closing anyways since the primary lender is bringing $X in digital currency and the balance, owed by the buyer, could also be paid in ditibytes by the seller (reducing the seller's proceeds from sale).
0 Reply
Raymond J. RodriguesBusiness Member
Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
5y
You’ll have to bring your own 15-20% down payment on a conventional loan for an in investment property.
[email protected]619-456-8311
Helm Mortgage Corp.5127 Reviews
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.