Loan Solutions
Conventional
Eligible First Time Homebuyers can put as little as 3% down payment on single family homes.
Eligible homebuyers purchasing a single family home or multi family home as a primary residence can put as little as 5% down payment.
*Note that putting less than 20% down requires PMI included in monthly payment until equity reaches 78-80%.
FHA
Eligible homebuyers purchasing a single family home or multi family home as a primary residence can put as little as 3.5% down payment.
*Notes on FHA loans:
Up front PMI cost of 1.75% will be added to closing costs, which can be paid at closing out of pocket or can be added to the loan amount
< 10% down requires monthly PMI payments for the life of the loan
10% or greater down payment requires monthly PMI for 11 years
3 unit or 4 unit properties require a self sufficiency test in addition to the standard eligibility requirements of an FHA loan
Investor Loans
Investors may use the income from the property to qualify for the loan without using personal income. Can close in LLC as well as individual names.
Debt Service Coverage Ratio (DSCR) programs compare market rents to total mortgage payment of investment. 0.75 to 1.25 range is typical for DSCR and priced correspondingly to risk.
You may be able to qualify on short term rental rates instead of long term rental rates.
Non QM
If you are unable to qualify under conventional guidelines, perhaps Non QM real estate loans are what you need.
Examples would be:
non warrantable condominiums
properties with excessive acreage
land only
having too many financed properties
bank deposits as source of income
alternative income documentation (bank statements, P&L, VOE)