4-plex 100% Financing, All Gone?
My broker tells me that there are no more 4-plex 100% financing programs left out there with reasonable rates (under 7%). This has happened within the last three months, that most of these lenders have dropped out. Know of anyone this this type of financing available?
Thanks!
Most mortgage lenders, since the AHM fallout last week are only interested in A-paper loans. That means 80% LTV or less, full document submittal, 700 Fico or better, 30-year fixed only...and thats for owner occupied single-family properties. Investment or commercial lending is even worse.
The markets are doing you a favor, that 100% thing is bad business. Especially if its an investment.
At least 5%, why? 1) you put skin into the game 2) easier to cash flow 3) instant equity and 4) lower interest rates.
The lending market is closed for business. Any hint that your loan could be trouble and they are running for the door....and im talking about the big boys...Merril Lynch, Bear Steans, etc...
But on a side note, I just bought 5000 shares of bankrupt AHM stock for .20c the other day...thats $1000. Unbelievable, the lenders are bad...but not that bad. And we all know bankrupt doesnt mean bankrupt in America.
Thanks for the feedback rglover548. I like 100% financing because if I did 5% down I would have no money left for improvements. I always do owner occupied financing so I meet all your criteria:
1) I live there, so my skin is in the game
2) I have extra money with no down payment, I put that money into updates---future cashflow.
3) updates that I do the first year (kitchen, bathroom) --instant equity.
4) owner occupied financing provides lower interest rates
Quote:
On 2007-08-08 03:59, rglover548 wrote:
The markets are doing you a favor, that 100% thing is bad business. Especially if its an investment.
At least 5%, why? 1) you put skin into the game 2) easier to cash flow 3) instant equity and 4) lower interest rates.
The lending market is closed for business. Any hint that your loan could be trouble and they are running for the door....and im talking about the big boys...Merril Lynch, Bear Steans, etc...
But on a side note, I just bought 5000 shares of bankrupt AHM stock for .20c the other day...thats $1000. Unbelievable, the lenders are bad...but not that bad. And we all know bankrupt doesnt mean bankrupt in America.
So what has been a sellers "motivation" to take part in a deal as you describe if they have no mortgage looming large?
Loon? Any further insight on this?
Anyone try FHA loans for 4-plex? I read that it is 3% down, what are the interest rates like?
FHA will do a 3% down on a 4 plex at market conventional rates. The catch: Must be owner occupied and title must be seasoned for 90 days on refies. NOO 100% are gone for good. The LTV is dropping. Right now its hard to get 90%
rglover,
Just a comment on your side note: hope its different for you but a freind of mine bought into a large company that filed bankruptcy, got lots of shares for low money like you but when the company came out, they came out under a diff. ticker name, thus his shares were worthless. Bankrupt companies can leaggaly do this.
Quote:
On 2007-08-08 03:59, rglover548 wrote:
The markets are doing you a favor, that 100% thing is bad business. Especially if its an investment.
At least 5%, why? 1) you put skin into the game 2) easier to cash flow 3) instant equity and 4) lower interest rates.
The lending market is closed for business. Any hint that your loan could be trouble and they are running for the door....and im talking about the big boys...Merril Lynch, Bear Steans, etc...
But on a side note, I just bought 5000 shares of bankrupt AHM stock for .20c the other day...thats $1000. Unbelievable, the lenders are bad...but not that bad. And we all know bankrupt doesnt mean bankrupt in America.