Just wanted to poll...is there really a such thing as a good zero down investor loan program? I have an apartment buyer who is looking for a 100% loan with little or no closing costs and it seems as if that's close to impossible. He would obtain the property at a below-market price. Another rehab buyer wants 100% financing as well with little out of pocket expense.

I know there's some creative financing with seller carry-backs, but are my buyers being unrealistic with wanting 100% loans with no out of pocket expenses?

I personally know of rehab loans that one can get with zero down and closing costs can be rolled into the loan, because I use them. Ask around, specifically for construction/rehab loans.

yes, usually a local bank or a mortgage broker will have a program. typically the property has to appraise higher than the sales price.

the buyer has to be very strong to get these types of loans.

Even you get approved for these loans, are there clauses to prevent you sell right away or a prepayment penalty?

mine doesn't have any of those

I have a lender that does 100% for credit over 680 on investment property.

There are loans out there. Becareful what a mortgage company says is 100% investment property. Sometimes and most of the time it is for marketing. I knwo banks that do 100% investment on up to 2 unit properties. If you are doing a construction rehab loan you can get the money you need. That is the only loan i know of that will lend you money based on the future value of the home. I am workign with someone right now we are getting them 80% of the future valie. the home is 200k and future value is 300k so we got them the 240k to purchase and repair the home. However also know that these repairs have to be done by a licensed contractor. There are draw schedules for you to get the money. The banks are very tight on lending money out on future value. they dont want funds running out before a project is complete.

What Kelly Hall say is true! 100% invester loans are somewhat new and they are available. The rate is score driven with two tiers. With a 720 score, I could put someone in at 6.5% 3yr arm. The lowest credit score is in fact a 680. 30yr fix, 1, 3, 5 year arms are available. Most of these lenders will allow up to a 3% seller contribution toward closing cost and the buyer must be able to show 6 months of reserves (PITI) at closing! No this is NOT a marketing bait and switch as some other posters may lead you to believe. IT IS REAL AND AVAILABLE.

This rehab loan is one of a kind. No out of pocket. www.upto80.com

Ryan

The right credit score, with good job history is usually enough to secure any loan you want. All you need to do is find the right loan officer with the knowledge of preparing said loan program.