Anyone know of a bank that will finance with 10%

New York city, NY · Member since 2016 · 18 posts · 1 vote

Hey guys, I'm looking for a mortgage company so far I looked at going to a big bank like Bank of America and Wells Fargo but what about all these online, any recommendations would help I'm located in New York! I'm looking to buy a 3 family home for 140k but most lenders want 25-30 I don't want to put so much down because I want to have money left over to pay the mortgage for a year just in case of vacancies. I get a lot of people saying I should do an fha loan but I don't want to live there or change my address. If anyone knows good banks or lenders please let me know Thank you guys.

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Ray Harrell

Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes

On thing I would also say, is if you are planning on buying more properties, bite the bullet and save the 20% for this one and save your FHA opportunity for a more expensive, owner occupied property. 3.5% of 400K is half of 20% of $140K.

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Ray Harrell
Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
9y
@Carlos Araujo, there are some banks that will do 10% down, but the loan will be based on your current income/debt ratio and not consider the income from the building. Also consider this, if you purchase a building that's occupied, chances are you won't live there for the first few months anyway, or if it needs extensive rehab, or if you're locked in a lease or a property that you can't sell or rent right away. Nobody expects you to move in on day 1.
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Ray Harrell
Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
9y
On thing I would also say, is if you are planning on buying more properties, bite the bullet and save the 20% for this one and save your FHA opportunity for a more expensive, owner occupied property. 3.5% of 400K is half of 20% of $140K.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
very difficult to find 90% financing if not impossible.. I have not seen it.
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Mark Fedorov
Allentown, PA · Member since 2014 · 264 posts · 120 votes
9y
I would suggest that you sharpen the pencil and see if you can squeeze out the 20% down. Extended vacancies only really happen due to bad management or renovation.
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Jeff Kehl
Rental Property Investor · Charlottesville, VA · Member since 2012 · 1k+ posts · 726 votes
9y
@Carlos Araujo
If the owners have a lot of equity in the property ask them to carry a 2nd for 15-20%. You would probably need to use a smaller bank and commercial financing to make that work though.
Also, keep in mind the deal has to be pretty good to cash flow well with 90% ltv. When I do this I am usually using 20 year financing on the first and 5-10 year on the second which eats up a lot of the cashflow.
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