Devil's Advocate: 100% financing

Gonna have to involve the seller or other equity. I dont think banks are doing it even for OO.

Im re-financing a free and clear property for the down payment on 2 other properties. That is 100% financing.

Might be able to do with a combo of 1st time home buyer programs plus seller concessions.

What I have found from working with my broker is this:

There is a Conforming 100% financed Loan
Government Program
64.99 DTI
Full Doc
CAn own other properties if upgrading
Fico min 660
95/5

100% HELOC. Is that different than 100% financing?

No.. but I cant recommend using a HELOC for long term financing. This is fine if you can re-fi and pay off the HELOC somehow.

So our question is finding long-term 100% financing.

Can you get the name of the program? Is this NOO or OO only? If it is FHA then it's OO only. And of course FHA includes PMI.

Rina,

It depends on what you are going to do with the property. I strongly recommend against short term (eg adjustable or high interest rate) financing if you are buying a keeper property.

But if you are going to LO the property and fully intend to pre-qualify the T/B and make SURE they get qualified/buy the property at the end of the year then just about any financing would do (IO, HELOC, maybe even hard money). It all depends on what your exit strategy.

Just be aware that if your exit strategy changes (ie your T/B does NOT buy) then you may have the wrong financing in place.

It would probably make sense to use short-term if you plan to flip the property, as well. If you end up having to hold it, just refinance. And as long as the short-term rate is competetive with the rate you would get on an investment loan, there's no rush, right?

That's what all those sub-prime borrowers though. You are probably ok as far as interest rate risk goes. I don't expect short term rats to skyrocket.

But what if the property declines and you CANT refinance?

What Mark is talking about are all valid points and things that should be taken in consideration. Planning is very important, as well as your exit stategy. Great points.

Consider it considered.