Other options outside of 20-25% down?

Question

I have talked to 4 different lenders regarding loan options for non-owner occupied properties. None of the lenders that I have talked to can offer me a down payment less than 20-25%. I am trying to cash flow the property as much as possible, but don't want 50-80k for a down payment. Is my only option to put 20-25% down? Are there any loans that investors commit to that do not require 20-25% down? Any suggestions?

Kiera Underwood · Answer

@Dustin Zenz confirmation that the lender that I see most people using is still doing 15% down conventional loans! His name is Aaron Chapman with Security National Mortgage. Happy to make an intro. Good luck!

Kiera Underwood · Answer

@David Lorenz it's only SF. Multifamily is still 25% down. Rates are competitive though! Sub 4% with no buy down.

Ryan Cleary · Answer

@Dustin Zenz

You can take a chance at a brrrr but in my experience it’s very hard to accomplish. Either way good luck!

Ryan Howell · Answer

@Dustin Zenz - The 20-25% down is based on Fannie Mae guidelines for 1 or 2-4 unit properties, non-owner occupant I believe.  You're typically going to have something similar from commercial lenders as well.  The trick is to get your money back by buying a property below market.  In the first 6 months (could be 12) they will loan up to lets say 80% of the lesser of LTV or LTC (loan to cost i.e. purchase price), if that's significantly lower than LTV because you got a good deal, then refinance out of it in 6 months and recoup your investment.

Steven Westlake · Answer

@Carliss Robinson- i was also thinking the partnership, but don’t rule out hard money, as long as the numbers still work. Then maybe a refi after repairs, to pay off hard money guy.

Carliss Robinson · Answer

What I learned so far to get the lowest down payment for non-owner occupied is either a partnership or seller financing. I'll let you know if I find additional alternatives.

Dustin Zenz · Answer

Thank you for your input everyone, I will begin exploring some different avenues for financing (seller financing and partnering). Kiera, I will check with that lender you sent me. Thanks again.

Let me know if anyone comes across any other avenues!

Kiera Underwood · Answer

@David Lorenz I'm 99% sure that it's only SF. But I will follow up.

Kiera Underwood · Answer

@Gagan P. Following up!

Gagan P. · Answer

Sent you a message.

Thanks

Other options outside of 20-25% down?

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