Question
How can I get a loan to purchase rental property with no money down?
I want to borrow $250,000 but I can only come up with about $10,000 for a down payment (most banks want $45,000). The property I want is currently completely leased and generating about $4,000 a month. My credit is pretty decent. Does anyone know of anyone who would loan me money? I don't know where Craig lives, but don't anyone move there...he pays way too much in taxes. The "loan calculator" figures in taxes AND insurance with a payment less than $1850
2 years ago - 4 answers
Best Answer
Chosen by Asker
Few legitimate lenders are taking on that kind of risk. Be EXTREMELY wary of come-ons from people who post here saying that they can help. The vast majoritiy of them are scam artists located in Nigeria or Latvia or some other far-flung place. Even those who aren't in Nigeria, they are posting in violation of the Yahoo! CG and TOS, so would you really want to do business with someone who starts off with unethical behavior? Most likely they'll disregard the rules and laws that govern the mortgage industry as well, based upon their minimal character displayed so far.
2 years ago
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Other Answers
Banks have been backing away from 100% loans for quite a while. Will you be putting this into an LLC, C-corp, or S-corp? I know a guy that maybe able to help you get a business line of credit that you could use as part of the down payment. Do you have other investment properties? Can you leverage another property to get you to the 45K mark, or is this 10K with your current leverage-able amount?
by saberhilt- 2 years ago
Looking for financial disaster are you? 250K over 30 yr at 8% is about $1850/mo, taxes will run about 1500 month so after you pay the mortgage and escrow the taxes you have about $650 month to cover all your other expenses like insurance, repairs and so on........and then you lose 1 tenant and your income is less than your costs
by Craig T- 2 years ago
I don't know of any. Maybe you can find someone to help with the down payment.
by Mortgageman- 2 years ago
try prosper.com ------------------------------ LOAN SCAM - Do Not Pay UpFront Fees. Do not send money UpFront via Western Union or MoneyGram to any person or business in the UK, Nigeria or Canada in hopes of getting a loan. If you do you will learn a hard lesson & never see any Loan money. Remember, if it sounds too good to be true, it probably is! NEVER give out your personal information to strangers online! Always be on guard.
by John Loves Jenn- 2 years ago