Is it possible to get 100% financing for a fourplex?

Question

I have really good credit (750+), $80,000 annual income, twelve-months reserve for mortgage payments, and verifiable assets. Is it possible to get 100% financing with No Down Payment on a fourplex rental property? Lenders please leave contact info. Thanks

I am in california. The property is valued at $630,000, which is the amount I would like to borrow. Any recommendations for a specific lender/mortgage broker? Also, if I am able to negotiate a price of $600,000; how could I do a "credit back" to me in the amount of $30,000? Thanks

Answer 1

The determining factor is not your credit or income. The amount of the mortgage vs. the value of the property is the determining factor.

If the property is valued at $300,000 - and the sale price is $189,000. ALL THE MORTGAGE COMPANIES WILL CUT EACH OTHERS THROATS TO WRITE YOU A nothing down deal.

Most times it is the buyer that mess up a good deal, because they think they can not get one. What you have said about yourself, means that you are a DIAMOND investor. DEMAND THE BEST.

Answer 2

No you do not get any credit back at closing. What ever the appraised value or sale price is or which ever is the lowest will be the sales price.

If you live in one of the fourplex then you will be considered purchasing an owner occupied property, which is good. Your interest rate is based on your credit score and if the property is owner occupied or not.

It is possible to get 100% financing as long as your score is what you purport it to be.

I reside in California also. for additional info click on my photo and email me.

All banks just about offer the same products and loan programs with the different qualifications in each of their programs.

Your interest rate is based on your credit score and how well you have paid your consumer debt over time, not by the company that does your loan or even complete the paper work for your mortgage application.

In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

When you speak with the mortgage broker you will need the following documents to complete the loan application

#1 One month of pay stubs for each person that will be on the mortgage.

#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

#3 Two years of federal income tax along with the W-2 that match.

Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home.

In this pre-approval letter will be the amount of house you are qualified to purchased.

Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

Your mortgage broker will now order an appraisal to show proof of the property value.

The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.

After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

I this has been of some use to you, good luck

"FIGHT ON"

Answer 3

Whatevit got it WRONG when he said -

"The determining factor is not your credit or income. The amount of the mortgage vs. the value of the property is the determining factor. "

Take it from this former loan officer, when appraising properties lenders take the LESSOR of the appraised value or purchase price when determining the Loan-to-Value (LTV). Therefore, if you buy a place worth $300k, but get it under contract for $150k, the lender uses the $150k as the basis for their LTV calculation.

Back to the original poster's question, yes, you can probably find a lender willing to lend 100% on a quadplex. Be prepared for a high rate for four reasons:
1. The lending guidelines fall outside of Fannie Mae's underwriting parameters.
2. This is an investment property
3. This is a four unit investment property.
4. This is a four unit investment property with 0% down.

The above I outlined is referred to as "layering of risk" and when you add risk on top of risk you get a high rate. Don't necessarily be scared off by a higher rate...just know what you are getting into ahead of time...

Good luck...

Answer 4

Yes, many lenders will lend to someone in your situation, especially if you are planning on living in one of the units. If not they will charge you a higher interest rate. They will use a portion of the rent from the property as your income, usually 70%.
As far as the negotiations go, your best bet is to get a credit from the seller. EX. Sale price of 630,000 with a credit back to buyer of 30,000 for closing costs and minor repairs. The lenders will not give you cash out of the purchase of a home.
Ron 619-379-2063 [e-mail]

Answer 5

It depends on what state the property is located in. Here in GA, a 4plex is still considered residential property. You can still get a regular mortgage loan at 100% with no deposit at that credit score. Be aware that the interest rate will not be quite as good as it would if you were to put down a deposit. I can do it though.

-Tasha Griffin [phone]
[e-mail]
Blueprint Mortgage Service, Inc.
Roswell, GA 30075

Answer 6

YES
shot me an e-mail

Answer 7

Yes it's possible because we can do it.