100% financing
So has anyone actually gotten a bank to give you 100% of the money for a house? I am specifically asking about 100% financing on a second house, an investment property if you will, but we would be living in one of the units of the new property. We would rent out our first home…
So has anyone actually gotten a bank to give you 100% of the money for a house? I am specifically asking about 100% financing on a second house, an investment property if you will, but we would be living in one of the units of the new property.
We would rent out our first home (we put down 20% and can cover the mortgage and taxes with the rental income) and fix up the second property over time. We have cash for the closing costs but no money left for the downpayment. Is this possible and has anyone dealt with a lender for this, who isn’t a loan shark?
Thanks .
Take an equity loan from yr first home and make sure yr rental covers for yr equity loan and yr new morgage…. shoudn’t be a big problem if you have good credit…. Good luck
I have done this twice on two investment properties. As long as you have good credit and a decent salary there should be no problem. You can also try to get sellers concesion with the new property you’re buying, if the price is right and keep your closing cost money to put back into the house if it needs upgrading. A good friend of mines is a Manager at Wells Fargo bank and he’ll work out the best deal for you with no hidden junk fees. Contact me if you’re interested.
OP here…That is fabulous advice.. hadn’t put it together like that. I know we have a one-year restriction to make our current home our primary residence. But we have alredy met that, or will by the time we close on the second property… Thank you!
once you move out of your 1st home and plan to move into the second home the second home becomes your primary residence and your first home becomes your 2nd or investment property. This is a good thing.
Double check your mortgage on your current home but usually this is not a problem. Some mortgages may require you to live in the home for a year or so but after that don’t specify that you have to occupy it any longer.
So when you shop for a mortgage you will be searching for an owner occupied loan for the multi-unit property.
Also, the better way to go rather than getting a 100% loan on the new property would be to take an equity line from your current home and use that as your down payment on the new property. Once again you’ll have to check your 1st mortgage to see if there are any restrictions against secondary financing and the line of credit or second mortgage will need to be for a non-owner occupied property. However, doing it this way will most likely get you a better rate on the new mortgage.
A good mortgage broker will be able to advise you on all of this and let you know what rates are available for what types of loans.