Minimal Down On A Legal 2 Family.........
What is the minimal down payment that is allowed on a legal 2 family? My lender tells me the minimal is 10%. Has anyone put less done on a multi unit? Any suggestions on getting a loan with minimal down? 5% optimal for me.
If you are an agent you can get a commission for 5 or 6 %. That is one way to give less down. Also add a remodeling allowance to the sales price. Get seller to carry back a second for 5%. I have done hard money loans where I got money at closing. I am doing one next week with 3% down but I will get that back in remodeling expenses etc.
Hope this helps some
Ted Jr
Also depends if you plan to occupy one of the units. You can get up to a 100% if you are living in one of the units. But 10% if it's an investment property. I agree with the last post. Try to negotiate the seller to take a note for 10%. You can structure it anyway you want but most sellers want it back in 5 years. However, the beauty is that you can negotiate to have a fixed rate at let's say 5% interest only with a balloon payment at the end. After 5 years the property should have appreciated whereby you can refinance and pay the note off.