Profile picture for scb2266

Is there any way to purchase investment properties without putting down 20%.

our job comes with housing and we want to take advantage of buying some investment properties while we can.  We only have about $20k for a down payment, but we are being told that we need 20% for a non owner occupied loan.  Is there anything we can do?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2009 - Saint Louis
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (10)

Profile picture for wetdawgs
Hi Mary:

one of the tricks of effective use of your precious time posting on advice is to check the date on the original post before responding.   For example, this one was Aug 4, 2009.      It is tempting to build one's profile by answering every old question for a specific area, but it may be a trick that has negative consequences when potential clients see responses 2 years after a question was asked.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 13 2011
Owner finance... and they are out there -- it will take more hunting, and an agent willing to dig deep for you but there are highly motivated sellers.

Good luck!

Mary Krummenacher
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 13 2011
Greetings,
First I would talk with a qualified CPA about the potential tax pros and cons. Second look within your price range you might be able to buy 2 properties and put 20% down on each, that pretty aggressive though, but you can do it if your serious. look for all loan possibilities. talk with a qualified lender that has worked with investors. network with other investors, find out all you can.Professionally yours,Daniel Smrt

[content removed by moderator for being self promotional]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 16 2009
If you do not own your primary residence, and have not for the past 3 years, you could buy a home as your primary residence using FHA financing. But, if the mortgage loan was for a primary residence, you could not rent it out. There are people who have housing provided through their job that have bought homes, sometimes in another state, for their primary residence. They go home a couple of times of year to check on the house and enjoy it. Then, in a few years, when the job changes, they have a home of their own. In the meantime, they have a permanent address, the tax benefits, and the security of knowing that if the job ends tomorrow, they have a place to go.
If you are interested only in investment property, you may need to save more money. Ryan Shaughnessy is a good agent in St. Louis. Try talking to him to see what he recommends. There may actually be some homes for sale for less than 20k in neighborhoods that, block by block, are improving.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2009
Not unless you have a very close relationship with a local lender/banker that knows your personal situation and you have a lot of other investment leverage/cash or other assets that are worth them taking a risk,  in my experience.  Usually a lender wont loan money on a property unless you have 25% at least... due to the declining market status we have.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2009
YES and NO.

Generally speaking you will require a 20% down payment plus have some money in reserves to cover any vacancy or repair.

However, once in a while you will come across a good deal that can be purchased for less than 20% down.  This is not the norm but it can be done if the conditions and terms are right.

There is a good example on our website where you can purchase a new 3-bedroom duplex for only /,000 down and about X1-IAu86bx2xvfg5t_kbu5y,000 in closing costs.  You can analyze the numbers and market data to see if this makes sense for you in your current situation. (Photo added below.)

Continued success!


.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2009
Owner finance is your best option. Many commercial property owners will consider financing your purchase at a competitive rate if you are financially sound buyer. They will still probably want 10% minimum as a down payment. You may also find a distressed property with a local bank that will make a deal with you to finance the property with only 10% down, again as long as you are a strong buyer and the investment is sound. Good luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2009
Profile picture for Ken Kopper
scb2266, only investor program that I know of that will accept above 80% is FNMA's Homepath. This program is only available for purchasing Fannie Mae owned properties (foreclosures) and will allow up to 90% financing for investment properties

Here is a link to their site of listings in your area

FNMA Homepath
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2009
Not that are worth considering. Look, save some money, and when you have 25% then start. 20K is a very small amount of money to start being an investor, you need a LARGE cushion even after the downpayment.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2009
Not that I have found. In fact when I posed the same inquiry 2 weeks ago to two of the lenders I work with, I was told you need 25% down! I am anxious to hear if you find anything else different.

Stephanie Grossman
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2009
 
Related Questions
How to get insurance on a rental property in an LLC
Profile picture for KeepCalm
Latest answer by KeepCalm
December 05 2011 | 7 answers
  • Asked by KeepCalm
  • In Investing
  • November 14 2011
Is there any way to purchase investment properties without putting down 20%.
Profile picture for wetdawgs
Latest answer by wetdawgs
September 13 2011 | 10 answers
Is investing in residential land a good idea?
Profile picture for Vince Curtis
Latest answer by Vince Curtis
September 13 2011 | 8 answers
  • Asked by STLforNow
  • In Investing
  • August 24 2011
Attention investors, would you recommend a 2 family or a 4 family? I have an investor curious...
Profile picture for Seth Captain
Latest answer by Seth Captain
July 25 2011 | 5 answers
  • Asked by Kristen Turner
  • In Investing
  • July 19 2011
How do I find properties that I can wholesale to investors?
Profile picture for tdtydfkyul Winggfxsgf
Latest answer by tdtydfkyul Winggfxsgf
October 05 2009 | 6 answers
  • Asked by nmniemira
  • In Investing
  • January 04 2009
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 7052 Camden Ct, Saint Louis, MO Home For Sale
    7052 Camden Ct, Saint Louis, MO 63130

     For Sale: $124,900

    • Beds: 2
    • Sqft: 1248
    • Baths: 2.0
    • Lot: 6621
  2. 2330 Eagle Pines Dr, Saint Charles, MO Home For Sale
    2330 Eagle Pines Dr, Saint Charles, MO 63303

     For Sale: $207,500

    • Beds: 3
    • Sqft: 1749
    • Baths: 3.0
    • Lot: 10018
  3. 6941 Vermont Ave, Saint Louis, MO Home For Sale
    6941 Vermont Ave, Saint Louis, MO 63111

     For Sale: $35,000

    • Beds: 1
    • Sqft: 1001
    • Baths: 1.0
    • Lot: 4356