All Forum Posts by: Heather Easterbrook

While 25% is the norm, the are options available that only require 20%.

Mixed-use commercial loan.

@Ian Huber You are correct, in most cases, conventional mortgages are not assumable. Most FHA and VA loans are assumable, pending lender approval.

If you go the commercial loan route, there are lenders that will combine land purchase and construction into one loan.

You can get a commercial loan (no DTI requirements) with an LLC. Non-recourse is more expensive, but shouldn't count against your property limit.

@Chandler Harker There are commercial loans available with 30/30 fixed terms that lend to LLC's. Rates start around 5% depending on loan amount, DSCR, credit score, LTV, etc....

@Rachel Smith You are correct, commercial loans are done using DSCR, not DTI. 70% is typical for cash-out commercial loan. @Alexander Felice There are a lot of lenders that do not ask for any income verification. 

@Rachel SmithTalk to an experienced residential mortgage lender to confirm your qualifying status. There are a lot of programs out there that might work. @Alexander Felice Commercial loans do not use DTI to qualify for a N/O/O SFR (1-4 unit) mortgage, so that shouldn't be an issue. Rates start around 6.5% for a 30 year fixed, but obviously, many factors go into the pricing.

@Jeffrey Kovnick Yes, 1% is pretty pretty standard. However, it doesn’t (or shouldn’t) cost anything to shop it with a broker.

@Corey Slate Here’s where your loan becomes a little harder to place. Some portfolio lenders require a minimum loan amount of $500k, not purchase price. Many also require a minimum property value of $75k. There are exceptions to these conditions, but they are harder to find and usually have a slightly higher interest rate then say a $1M portfolio loan with a minimum property value of $100k.

@Corey Slate  What is the minimum value of the individual properties?