Feb
14
100% Financing for Investment Properties
February 14, 2007 |
Mortgage guy got back to me with some more options and it looks like we’re going to go with a 100% financed, conventional 30 year fixed mortgage for the 1002 S. Main St. house. The interest rate is pretty ridiculous at 10.25% but that’s pretty much a moot point, given the short amount of time I’ll be holding it.
Total cash to close will be a bit over $2,600, which is psychologically going to make this first flip a lot easier to handle. I’d been prepared to pay up to 10-20% down if need be, and we could have done that without any real pain or pinch to the wallet, but it’s definitely nice to keep the initial outlay of cash that low.
Monthly mortgage payments will be a bit over $500, which again is pretty reassuring, as far as it not being too painful at all to make a few payments until the place gets sold.
So everything is pretty much a go at this point, knock on wood. I’m in the process of getting bids for replacing the furnace, and probably will go ahead and line up some bids for the roof.
Comments
2 Comments so far
Who does the financing for investment properties at 100%
Quentin,
Not anyone these days. Got to check the date on the post, as it was originally put up back in February 2007.
I was just approved for 95% financing for an investment property, but it was hard to get, and 90% is more the norm at the moment, assuming you have excellent credit and can fully document income, etc.