Looking for a lender that will allow the seller to pay closing cost, gift a second and the borrower merely puts down 5%. Stated, 95% LTV, N/O/O, SE, 667 FICO. Is this not doable?

What is killing you is the NOO... Take away all the otehr stuff and it would still be ahrd to do... most NOO loans require 10% down these days. There are lenders out there who will do it, but be prepared for a hefty rate! Ler me know if I can help you with anything else!

Too many risk layers.

In most areas of the country newly purchased investment property (especially at high LTV) will generate negative cash flow. Over the short term (next 6 to 24 mos.) what little equity the borrower has here could be lost by the depreciating market. The lenders are looking at it like this: 6 mos. to a year down the road, the borrower is supporting a negative cash flow every month and has no equity in a property that he doesn't live in. Add that to the fact the borrower is self employed and could not prove how much money he makes.

Can you guess what is very likely to happen in this situation?

Borrower is going to need a larger down payment or substancial cash reserves to mitigate these risks.

What a great & clear explanation, SDmortgagepro! Acourse I have come to expect that from you : )

Thanks for the education SDmortgagepro. Let me offer more details on the same subject. The appraised value is $203k, the buyer placed an offer for $155K, the offer was accepted. Because this will be borrowers' fourth purchase, the best LTV is around 90%. Can the seller ( a bank selling a foreclosure), offer a gift of equity equal to 10%, leaving the buyer with only the closing cost?