Financing rental purchase w/less than 20%

[Nick Dunin]

Financing question.

I’m looking at buying a new construction that I’ve negotiated to $137k. My lenders want 20% down on rentals, which would be 27,400. Id like to be in it for less. Could I up the contract price by $15k to 152k and put in the contract that seller gives buyer 15k at closing?

I would be putting 20% or 30,400 down of 152k, and get back 15k at closing. Which would come out to being in it for 15,400 or 11.2% down. Lower than the 27,400.

Do you know if there are lenders that would be ok with this?

I’m fairly certain it would appraise