All Forum Posts by: Graham Parham

Before you decide on what down payment is best for you first decide on the strategy of why you’re investing in real estate. Buying and holding real estate is subjective to how long you want to hold the property and why. Most customers that I deal with are looking into buy property for a long-term hold, mainly as a retirement asset. They are wanting the asset to generate a passive income today as well as when they retire. Even with that strategy some people feel they need to put at least 50% down when purchasing real estate to give them greater peace of mind knowing that they only have a 50% leverage on the property. Leverage is leverage. It all depends on the payment option that you feel comfortable with but not get too greedy. You will need to be smart with your money. You work hard for money and you want to see it grow for you.

I’ve been working with investors for over 17 years and have been fortunate enough to be an investor for the last 10 years. I personally feel that real estate investing is always the best way to go regardless of the economic environment. I love having discussions with some of my very seasoned landlords that have been vesting since the early 80s. To hear them talk about the difficulties of finding loans over the years and also accepting rates that today a lot of new investors would not even think about doing. Most of the investors that I work with have the same strategy that I do. Buy-and-hold. Because of that the sweet spot for down payment typically is 20% down. The main reason for 20% down is they don’t want to have private mortgage insurance and they want the options to escrow their tax and insurance payments. Most pro-formas that you will be presented when purchasing investment property will typically have a 20% down and 80% loan to value scenario.

Can you put less down the 20%? Yes, we do have a 15% down payment option available, but keep in mind it does require private mortgage insurance and your cash flow will not be as good.

An example of the benefits of putting a full 20% down versus 15%.

As you can see in the chart that for a measly $7500 more in a down payment, you would eliminate having to pay PMI for the next 44 months (44 X $71.00 = $3,124) as well as the cost of money is 0.250% better with 20% down ($7,500 @ .250% over 44 months is $951.57). You do the Math!

Thanks for bringing that to my attention. I sent that to my tech guy and will have fixed shortly. Sent me you phone and email and I will let you know personally. 

Sure. [email protected]. Website: www.tennesseeinvestorloans.com  Toll Free 855-326-6802. Call me any time. Check out the new book on the site. 

Graham W. Parham been a Mortgage Loan Officer for over 19 years with 25 years in sales and marketing. He is a leader of financial expertise in the North Texas residential real estate market, developing a significant following among home buyers and investors. Known and respected industry-wide, Graham’s production consistently ranks him as a top producer in this market place.

Graham offers invaluable insight into a purchasers likely requirements, providing an exceptional business ethic of customer service and respect, catering to their needs from pre-qualification to closing. He is a truly dedicated person, who strives to ensure that each transaction is handled in a timely and stress free manner. By employing these standards, Graham has established a solid reputation for going the extra mile to put together the absolute best financing available for his clients. Graham prides himself on staying ahead of the curve, keeping up to date with the latest products and industry trends.

As an active investor himself, Graham has a strong insight on what his investment buyers are looking for to accomplish their short and long term goals. Knowing that investment loans strongly scrutinized, it is up Graham his team of underwriters who understands rental property loans versus that of an owner occupied residence. His general knowledge of REO properties and Turnkey providers coupled with a strong operational staff allow his loan closings to be seamless and "On Time Every Time"

Highlands Residential Mortgage, LTD. is completely submerged in the real estate investing industry and has access to many lenders nationally. Our clients benefit from up to date guidance on all conventional investor loan programs, and less known creative financing strategies. Knowing that an investment loan will be far more scrutinized, it is Graham Parham and his team of underwriters who understand a loan processed for a rental property versus that of an owner occupied residence.

Just as you would not seek legal counsel from someone who does not have a law degree, nor should you trust a loan originator for your investment property loan from someone that is not an investor themselves. Highlands Residential Mortgage, LTD. is an unparalleled mortgage lender whose delivery sets us apart!

Graham Parham’s team mission is to consult every investor based on those individualized situations and goals. Whether you are buying your first home or investment property, we carefully look at your options that will give you the best opportunity for success. Because we know how important your investment financing strategy is, our extensive research and knowledge of those programs will be brought forward in educating you as an investor, throughout the lending process.

“My goal is to continue assisting my clients for life and help them meet the ever-changing needs life throws our way!”

Conventional Financing Guidelines

Investor Loan Programs 1 - 6 Loans

• 20% Down Payment available for Single Family
• 30, 20, 15 & 10 Rate Programs
• Adjustable Rate Loan Programs
• Minimum Credit Score of 620
• Cash Reserves – 6 Months on subject property and 2 months on all other properties owned
• No prepayment penalties
• H.E.L.O.C. Fund allowed for down payment and closing cost
• No Gift Funds allowed
• Revocable Family Trust allow for titlement
• Entity vesting not allowed, i.e. LLC's, LP's, and S-Corp's
• Eligible Borrowers, US Citizen, Permanent resident Aliens, US Visa.
• Ineligible Borrowers – Foreign Nationals
• 1031 Tax Exchanges allowed

Investor Loan Programs 7 - 10 Loans

• 25% Down Payment available for Single Family
• 30 & 15 Rate Programs
• Minimum Credit Score of 720
• Cash Reserves – 6 Months on all properties owned
• H.E.L.O.C. Fund allowed for down payment and closing cost
• No Gift Funds allowed

You can Reach me anytime:

Graham W. Parham

Senior Loan Officer

State Specific Websites:

Alabama, California, Florida, Georgia, Indiana, Kansas, Missouri, Texas, and Tennessee

Thanks for your comment.l just getting started with BiggerPockets and learning as I go. Did not mean to offend you. 

Graham W. Parham been a Mortgage Loan Officer for over 19 years with 25 years in sales and marketing. He is a leader of financial expertise in the North Texas residential real estate market, developing a significant following among homebuyers and investors. Known and respected industry-wide, Grahams production consistently ranks him as a top producer in this market place.

Graham offers invaluable insight into a purchasers likely requirements, providing an exceptional business ethic of customer service and respect, catering to their needs from pre-qualification to closing. He is a truly dedicated person, who strives to ensure that each transaction is handled in a timely and stress free manner. By employing these standards, Graham has established a solid reputation for going the extra mile to put together the absolute best financing available for his clients. Graham prides himself on staying ahead of the curve, keeping up to date with the latest products and industry trends.

As an active investor himself, Graham has a strong insight on what his investment buyers are looking for to accomplish their short and long term goals. Knowing that investment loans strongly scrutinized, it is up Graham his team of underwriters who understands rental property loans versus that of an owner occupied residence. His general knowledge of REO properties and Turnkey providers coupled with a strong operational staff allow his loan closings to be seamless and "On Time Every Time"

Highlands Residential Mortgage, LTD. is completely submerged in the real estate investing industry and has access to many lenders nationally. Our clients benefit from up to date guidance on all conventional investor loan programs, and less known creative financing strategies. Knowing that an investment loan will be far more scrutinized, it is Graham Parham and his team of underwriters who understand a loan processed for a rental property versus that of an owner occupied residence.

Just as you would not seek legal counsel from someone who does not have a law degree, nor should you trust a loan originator for your investment property loan from someone that is not an investor themselves. Highlands Residential Mortgage, LTD. is an unparalleled mortgage lender whose delivery sets us apart!

Graham Parham’s team mission is to consult every investor based on those individualized situations and goals. Whether you are buying your first home or investment property, we carefully look at your options that will give you the best opportunity for success. Because we know how important your investment financing strategy is, our extensive research and knowledge of those programs will be brought forward in educating you as an investor, throughout the lending process.

“My goal is to continue assisting my clients for life and help them meet the ever-changing needs life throws our way!”

Conventional Financing Guidelines

Investor Loan Programs 1 - 6 Loans

• 20% Down Payment available for Single Family
• 30, 20, 15 & 10 Rate Programs
• Adjustable Rate Loan Programs
• Minimum Credit Score of 620
• Cash Reserves – 6 Months on subject property and 2 months on all other properties owned
• No prepayment penalties
• H.E.L.O.C. Fund allowed for down payment and closing cost
• No Gift Funds allowed
• Revocable Family Trust allow for titlement
• Entity vesting not allowed, i.e. LLC's, LP's, and S-Corp's
• Eligible Borrowers, US Citizen, Permanent resident Aliens, US Visa.
• Ineligible Borrowers – Foreign Nationals
• 1031 Tax Exchanges allowed

Investor Loan Programs 7 - 10 Loans

• 25% Down Payment available for Single Family
• 30 & 15 Rate Programs
• Minimum Credit Score of 720
• Cash Reserves – 6 Months on all properties owned
• H.E.L.O.C. Fund allowed for down payment and closing cost
• No Gift Funds allowed

State Specific Websites:

Alabama, California, Florida, Georgia, Indiana, Kansas, Missouri, Texas, and