Posted by Wayne-NC on January 18, 2001 at 12:37:00:
We have brokers here that will do 95% investor loans although you can not get a 2nd for the rest. So the total combined LTV can’t be more than 95%. Now as expected the underwriting guidelines are tough. I’m working one now.
Down payment - Posted by Eli
Posted by Eli on January 18, 2001 at 07:51:54:
If I borrow 80% of the purchase price of a home from a conventional lender, then can I get 20% for a down payment from a hard money lender?
Re: Down payment - Posted by phil fernandez
Posted by phil fernandez on January 18, 2001 at 10:07:41:
Hard money lenders, lend on equity. Never used one, but from what I see is that they don’t lend much above the 55% - 65% LTV and they will want to be in 1st position.
Now you could get an 80% of the purchase price 1st and then have your seller take back the remaining 20% for a no money down deal. Many banks won’t allow this type of arrangement. Keep on hunting till you find one.
If this will be your primary residence and you have good enough credit, there are programs out there that will finance you 100%. Check with an agressive mortgage broker to see what types of programs he might have for you.
Re: Down payment - Posted by Rob FL
Posted by Rob FL on January 18, 2001 at 09:16:14:
Doubtful. Most hard money lenders don’t deal with 2nd mortgages, let alone ones where there is minimal to no equity.
Re: Down payment - Posted by Wayne-NC
Posted by Wayne-NC on January 18, 2001 at 09:49:13:
I believe that most lenders won’t go above 95% combined LTV so you still have to have some cash to go with a conventional lender.
Re: Down payment - Posted by Rob FL
Posted by Rob FL on January 18, 2001 at 11:37:26:
I don’t know of any conventional lender that will go above 90% unless it is an owner-occupied property. I got the impression he was talking about investment property in this scenario.