Investor Loans (agents, duplex, Realtor, seller)

[Rapture]

Are there any agents or loan officers here that can explain investor loans with 100% financing? Thank you for your reply!

[olecapt]

Originally Posted by Rapture

Are there any agents or loan officers here that can explain investor loans with 100% financing? Thank you for your reply!

Who told you such things exist?

You can borrow against existing property and use that to buy something else. But it is almost impossibe to get 100 per cent financing on a real estate investment unless your Uncle Joe loans you the money.

It is sometimes done by lying on the application and saying you will occupy the property when you really don't plan to. But that is illegal and can get you in a jam...particularly if it does not work out well.

[Rapture]

Two people mentioned it...A friend told me that's a realtor. He has done it many times over the past 20+ years but I didn't get the details. I thought I would ask on here to get more info. A co-worker that's a realtor mentioned when I said I would like to do some investing being the prices are so low. It was in passing, so I didn't get the details from him either.

[olecapt]

That is almost always done with a claim the property will be owner occupied. The banks did not seem to notice in the big runup even when people were simultaneously living in four or five houses. Likely to get a lot more scrutiny today.

[mbmouse]

Olecapt is somewhat correct, yes there are a lot of unscrupulous out there who lie and say it will be owner occupied. However there are a FEW lenders who will do or allow a 100% financing on investor property (meaning a house or duplex you will rent out, not commercial property) by either a 100% loan or a seller held 2nd for a 100% CLTV. BUT! you will be paying about 14% interest and it will be an ARM loan. So, can you do it? Yes, Should you do it and does it make any financial sense? No.
5, 3, and even 2 years ago, yes, 100% investor financing was very obtainable and typical, but the past 18 months has seen major over hauls in the lending industry. 100% financing for any property is now not as easy as it was then.

[olecapt]

I defer to the Mouse...who knows more about this then I do.

I also believe that, during the run up here virtually all the speculative stuff was financed as owner occupied including a number of cases where more than a single property was involved. I think it improbable that the lenders did not know...they just looked the other way.

[DavidS827]

They actually still do exist, mostly offered by regional wholesalers, but the guidelines behind them are extremely tight now. You're not going to find a 100% SISA, SIVA or NINA, that's for sure. If you drop down to 95% the list gets a little bigger, but not by that much.