How to Get Financing While in Forbearance?

[Josh Edelson]

Hello All!

I want to buy positive cash flow properties with 20% down, but can't qualify for conventional loans because my loans (9) are all in forbearance for another 6 months. 

I'm doing this to save up a bunch of money - effectively like a free cash-out refi. (At the end, I'll do a loan mod and stick the outstanding balances on the backs of the loans as an interest-free balloon payment)

That said, I'm missing out on TONS of opportunities to buy because I can't qualify for a conventional loan. The industry standard is that you must have all loans current and need to have made at least 3 consecutive payments on each loan you've exited forbearance on before you can qualify for conventional loans. 

Does anyone have any alternative financing suggestions? I'm looking to buy like 3-4 positive cash flow SFRs with 20% down (so 80% loans on each), but can't get a loan until I release all my forbearances! Super frustrating as I'm stockpiling money but can't spend it. 

If I buy cash, I could blow my loan on one property then wait 6 months and refi. it, but would much prefer to buy like 3-4 with 20% down if I could get a loan with a decent rate!