Looking for investor financing for buy and hold property
Hello, I am real estate investor with 4 rental properties. I'm looking to purchase a 5th in Orlando, but I will not qualify for conventional financing due to the debt ratios. The property would be a condo or single family home, approximately $100k. My wife and I make a good salary, have very good credit, and will put down 20%. Is a portfolio lender the only way to go? Does anyone know any local Orlando banks that would lend in this situation? Thanks for your help,Kevin by ktsmith21778 from , Texas. Sep 29th 2014
Joan Gallardo (apply@clearlending.com)
#192 ranked lender in Texas - 23 contributions
Submit an application at https://clearlending.com and will go over your options.
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions
Kevin, a portfolio lender may be your only option but they generally are very reluctant to lend to investors. Have you looked into refinancing one or more of your current properties to lower your DTI? Or, possibly pay down or off some of your other debt to lower your monthly obligations?
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
More than likely, but understand that even a portfolio lender will have debt to income ratio guidelines.. Hard money lenders will usually have expanded ratios available, but the pricing is going to be terrible.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com
Sean Young (SeanYoung)
#1 ranked lender in Colorado - 1,112 contributions
Hard money might be your answer, but the terms will be terrible with a short term loan, high rates and high fees. I would first check with some local portfolio lenders in Orlando of course, but I don't know of any to recommend. Keep doing some digging and check with the local real estate agent, they may have some local contacts. Best wishes, Sean
Thank you for your help and ideas. I'm very close to hitting the 43% DTI, so it sounds like it may be better for me to reduce a little debt in order to lower that DTI into the proper range and go conventional. One more question, will there be any issue doing 20% down on a conventional for investment property? I've heard both 20 and 25% in the past. Thanks,Kevin
Sean Young (SeanYoung)
#1 ranked lender in Colorado - 1,112 contributions
Fannie Mae will allow up to 85% LTV on a 1 unit single family investment property, however you will have MI to deal with. Would be best to do at least 20% down, but you will get better financing with a 25% down payment. Best wishes, Sean
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