80% LTV is it out there?

[Todd Tyler]

Hi BP Community. I'm just getting start and have put together the funds for my fist investment. However, I'm having trouble finding a lender that offers 80% LTV on an investment property. I'm looking to purchase a duplex and it will Not be owner occupied. I've been calling a lot of banks with no luck. I'm in Los Angeles and I'm looking to purchase in the Coachella Valley area. Does anyone know of a Lender that offers 80% LTV???

[Tony Kim]

Are you looking for a hard 80%? I was able to get 75% on an investment property through Mega Capital Funding.  http://www.mcfunding.com/

[Brett Goldsmith]

Most probably want 70% if its your first property but I think if you find a good enough deal and the right private money connection you can make 80% work.

[Todd Tyler]

Thanks for your input 

@Tony Kim Looking for at least 80% LTV. 75% seems pretty common.

@Brett Goldsmith thanks for the info.

[Chris Mason]

Originally posted by @Todd Tyler:

Hi BP Community. I'm just getting start and have put together the funds for my fist investment. However, I'm having trouble finding a lender that offers 80% LTV on an investment property. I'm looking to purchase a duplex and it will Not be owner occupied. I've been calling a lot of banks with no luck. I'm in Los Angeles and I'm looking to purchase in the Coachella Valley area. Does anyone know of a Lender that offers 80% LTV???

There's a lender out there that'll actually do 85% LTV, but the rate is going to be up in the 8s. 7s at 80%. This isn't in the world of GSE subsidies, no secondary market sale post-close, so all the profit needs to come from you (or, really, your tenants...) or no one will do it.

[John D.]

@Chris Mason is calling it a 2nd home an option, or does it being a duplex rule that out?  Might work if the owner is planning on spending some time there?

[Joe Cordeira]

@Todd Tyler Yes there are programs out there for investments like I have that lend 85% on investment properties depending on credit score with no MI but interest rates will be higher. You could always refinance out of it and collect the tax benefits if you can handle the payments. Let me know if this helps!

[Stephanie Medellin]

@Todd Tyler  Yes, @Joe Cordeira is right, but I wouldn't say interest rates are terribly higher than conventional.  If it allows you to buy a great property when you otherwise could not buy it, it's definitely worth considering.  

[Martin L.]

@Todd Tyler look into PenFed. If you're former or current military, you qualify.  If you're not, then you can join a military "support" group, there will be a small fee involved, and also qualify.

[Brian Bistolfo]

@Todd Tyler Can't speak for CA but my first two conventional mortgages for investment properties in TX were 80% LTV...purchased 1.5 years ago. Since then the interest rate will have gone up a bit but I don't imagine the other terms would have changed. My broker sold the loans to SunTrust which owns millions of these...so I'm assuming if you find the right bank or broker that you can definitely find 80% or even 85%.

Put another way; here in TX it wasn't very hard to find lenders doing 80% LTV for investment properties, and since they were under a Fannie/Freddie (national) program I would think you could find it too in CA.