Need advice on options for multi family financing

[Greg R.]

Hello,

I am trying to explore my options for financing a multi-family investment (non-owner occupied). I currently owner-occupy a duplex with a VA loan.

I have been scouring these forums and the web trying to find a creative way to finance a multi-family without having to put so much money down. What are my options? Is 25% down the only way to get into these properties? Are there any lenders that offer any 80-10-10 type programs, or any programs that will allow me to take on LPMI/ PMI? Ideally I would love to get into something with 10-15% down. I am in San Diego, so good multi units here are generally a minimum of 400-500k.

I've already cash out refinanced my current VA financed duplex, so I don't know if there are any other way to leverage that property.

Any and all ideas are appreciated. 

[Chris Mason]

Hi @Keeya WangJones,

There is no such thing as someone with bruised credit due to credit inquiries. I've literally never seen that.

What we see a lot of is people with bruised credit due to personal irresponsibility, that run around blaming their bruised credit on credit inquiries when they talk to their friends because it's a way to shirk taking responsibility for their irresponsibility. 

That friend of mine, Jack, who blames his 534 FICO score on the cell phone salesmen who said it would be a "soft inquiry" six months ago? Jack is full of crap. Jack isn't telling me about his 8 credit cards in default and the car repossession. That's the truth. Jack and people like him are the reason we are all afraid of credit inquiries. Let's not make our choices based on Jack's nonsense, he can't even make an on-time car payment. 

I've got a few pages from an >800 FICO credit report, with name/ssn/dob/etc blacked out, that I show people because it has literally two single-spaced pages of credit inquiries on it.

The reason that myself and every other lender out there want to pull credit relatively early in the process is because Jack can't get a mortgage, period, and thus isn't worth the time, and the only way to tell Jack from the majority of consumers who are responsible, is in fact to pull credit. If someone wont let us, in the back of our minds we are going "oh, great, another Jack."