Posted by Brian on August 18, 2004 at 13:20:49:
There are a few select lenders that will do Non Owner Occupied Loans to 100% It would depend on a few factors. I would be glad to answer any questions you may have about these. They would have to be CA properties. The loans would be an 80/20 (a 1st and 2nd). The only thing that would cost you is the Appraisal and Title Fees if you didnt want to come out of pocket. I am in Walnut Creek so I know your dilema.
Brian
100% financing for Duplex - Posted by NorCal Ty
Posted by NorCal Ty on August 18, 2004 at 02:29:12:
I’m new to RE investing and would like to find a way to buy a duplex at 100%. I know that I can get a traditional loan at 75-80% and ask the seller to carry the rest. I keep seeing posts indicating that you can use 75% of the income to help qualify for a loan. Does this mean that you can get a 100% loan on a multi-family if 75% of the gross rents minus ALL expenses still nets a positive cash flow?
Re: 100% financing for Duplex - Posted by Jesse
Posted by Jesse on August 18, 2004 at 18:05:58:
Some lenders will do 100% financing NOO with a mid 680 FICO and full doc.
Jesse
Re: 100% financing for Duplex - Posted by michael schindler
Posted by michael schindler on August 18, 2004 at 08:56:18:
Buy your first one and move into it. This way, you’ll learn and will have hands on management (which there probably won’t be much with a duplex) but remember to keep it a habit of still paying yourself rent. Put what your unit should rent for into your operating expenses-you’ll be glad you did. Typically, the higher you go on loan LTV-type (80%, 100%) the higher the terms (rate and/or costs). As I said, look to buy your first one as an owner occupied home. You can always move out later-i.e. live there a year then move out and buy another one as an owner occupied.
My Details - Posted by NorCal Ty
Posted by NorCal Ty on August 18, 2004 at 03:24:23:
I forgot to add my details.
I’m 27 with $75k/yr in income and with my lowestfico at 680. I have a couple thousand in the bank, but would prefer not to use this.
I have found properties in the $50k-%80K range that would meet the criteria I mentioned in my previous post.
Re: 100% financing for Duplex - Posted by NorCal Ty
Posted by NorCal Ty on August 18, 2004 at 18:07:11:
Thanks! That’s great to hear.
Re: 100% financing for Duplex - Posted by NorCal Ty
Posted by NorCal Ty on August 18, 2004 at 10:45:31:
Thanks Michael. I would love to fine a duplex that I could owner occupy for a while and have been looking for one that I could do that with, but unfortunately I live in the Silicon Valley and most duplexes within a reasonable commute time to my job are priced above my pre-approval amount of $500k. I’m looking to invest in some cashflow positive property elsewhere. I also have a unique situation where my rent is only $400 a month, which is a rare occasion in this part of the country. Thanks again for your suggestion.
Re: My Details - Posted by James Strange
Posted by James Strange on August 18, 2004 at 06:54:54:
TY,
You do understand the 75% of rent to payment ratio corectly. However if your still carring a lot of consumer debt then that can still cut you out.
For 100% loans you will also need some cash in reserves.
I no longer do loans but wish you well and I am willing to answer questions.
James Strange
Re: My Details - Posted by NorCal Ty
Posted by NorCal Ty on August 18, 2004 at 10:49:54:
Thanks James! I don’t have much consumer debt and have been pre-approved for %500k on an OO loan. One of the reasons that I’m looking at properties in the $50-80k range is that the expeneses are low enough that I could still afford the property should it become completely vacant. Not that I want that to happen. Thanks again for your help!
Tyler
Re: My Details - Posted by CAguy
Posted by CAguy on August 26, 2004 at 14:15:46:
NorCal,
I am in So. CA and looking for duplex as well except market here is high also.
Where can you find 50-80K range unless far away and you might need PM?