What are my financing options besides conventional loan?

[Jinyu Shao]

Hi all! I have some extra cash that I want to invest in real estate. I don't have enough to buy all cash, except in some C, D areas. I want to use as much leverage as I can, so I want to explore my financing options. Getting a conventional loan from a large bank is out of the question because I'm recently self-employed and don't have the income they require. I have also two home loans under my name, which doesn't help the case either. 

I would like to get some advice on what other financing options I have out there and what their pros and cons are. I've heard some mentions of the types of loans that use your house equity as collateral. I'm just not sure where to look for those. Hope the investors in this forum can help point me to the right direction.

Thanks in advance!

Best,

Jinyu

[Ryan O'Mara]

@Jinyu Shao There are many options for you. I work with many commercial lenders who do permanent loans and do not require tax returns or use DTI. They can close withing 45 days (assuming no title issues).

You will typically need 30% of purchase price for down money and closing costs. And a FICO above 660 is helpful.

There are also short term lending options with HML if the property needs rehab or you just need a quick bridge loan.

If you're buying a commercial property (5+ units or pure commercial) then your options are narrower.  If you're looking at 1-4 unit properties, then you have many more lending options.

Point being:  you have options