low/no down payment on income property?

[Mike Knoblock]

Hello, new here; I though I would pose a question to the group.  

We would like to buy a home out of state for investment purposes. It's appraising for ~250K, and with about 100K of repairs would be worth over 500K.  We can purchase for around $125K.  Question is, can you get a mortgage loan on a property that appraises for twice the purchase price with no down payment? I know it's complicated by being out-of-state buyers, and we would not be using it as a residence.  

The larger question is, as we continue to invest in income/rental property, do you at some point depart from the traditional mortgage loan, since we want to leverage our cash as much as possible, and so far we've been riding on my income and savings, both of which are high at the moment. But I would like to retire soon, and I wonder how the picture changes.

Thanks for any input!

[Bob Okenwa]

@Mike Knoblock

I doubt any lender is willing to do 100% financing an a non-owner occupied property. The only loans I've seen that even go to 100% are VA loans and USDA loans.

Lots of investors here will go the maximum number (6 Freddie Mac, 10 Fannie Mae) of conventional loans as they tend to be cheaper than other loans. After the conventional limit, you'll probably have to go with portfolio loans.

[Michael Cohen]

Non-owner occupied limits are 80% to 85%, depending on the loan.

[Cody L.]

Some banks used to do so their loans purchase price or appraised value, whichever is *more*

Most (if not all on residential) now only do whatever is less.

So if a bank will loan you 80% of LTV or LTC, whichever is less than it doesn't matter if you're buying for $100k and it appraises for $500k. They'll loan $80k

What I've done when I know Apprisal will be strong is increase price a ton and get a credit at close. I bought a commercial building and walked from closing with money in my pocket (then put a NNN renter in there for $15k while I have a $5k mortgage. Wish they all could be like that)

[Pete T.]

Talk to small local lenders that can do what you are trying to do.  Sometimes the cost is a little more, but it is valuable finding people that can do things others cant.  I have ran into the same thing as above being told certain stuff cant be done - ie debt to income ratio, big credits without escrow, etc. nd there is usually someone that can