Down Payment Lending or 75% LTV full purchase

[Bailey Fait]

Looking for options to assist with a home purchase. Approved for the max allowable conventional loan, but looking for ways to fund the DP. The scenario is for a home listed at 1,095,000 with the ARV being at or around 1.4-1.5. Given the PP is 75-80% of the ARV, are there lending options to fund the full purchase? Would that only be a HML? Or would the better of the options be to secure private money at $50k for 3-6 months to fund the DP?

I was close, but not close enough to fund the down payment. The reno to get to the ARV was simple, but I had budgeted $70k conservatively. I would be performing the work myself and essentially doing a BRRR on the home. Plan for funding the reno was through my W2, cash I didn't use on the down payment and a business CC with 1 year zero interest.

Thanks for reading! First time trying to purchase a home without funding myself. (401k loan N/A, HELOC on investment prop N/A)

[Jake Andronico]

@Bailey Fait

I have a lender that will do a small HELOC on an investment property. I just shot you a PM.

[Andrew Zamboroski]

Quote from @Bailey Fait:

Looking for options to assist with a home purchase. Approved for the max allowable conventional loan, but looking for ways to fund the DP. The scenario is for a home listed at 1,095,000 with the ARV being at or around 1.4-1.5. Given the PP is 75-80% of the ARV, are there lending options to fund the full purchase? Would that only be a HML? Or would the better of the options be to secure private money at $50k for 3-6 months to fund the DP?

I was close, but not close enough to fund the down payment. The reno to get to the ARV was simple, but I had budgeted $70k conservatively. I would be performing the work myself and essentially doing a BRRR on the home. Plan for funding the reno was through my W2, cash I didn't use on the down payment and a business CC with 1 year zero interest.

Thanks for reading! First time trying to purchase a home without funding myself. (401k loan N/A, HELOC on investment prop N/A)

It sounds like a fix and flip loan may work here based on your reference to an ARV. Less downpayment usually and rehab covered through draws. It could be a good way to get it done with less money down.

[Doug Smith]

Most lenders, including us, will do the lesser of the purchase price ($1.095M here) or the appraised value as the amount used to calculate the LTV. After 6-12 months, depending upon the program, you can refinance it if you wish and use the appraised value. Most institutional lenders are going to look a it like that. Also, lenders typically don't like to see borrowed down payment funds.