Financing your Real Estate Investment...

Financing your Real Estate Investment

1. Conventional Lending
2. Private Banking
3. Seller Financing

Conventional Lending

• The Highlights
• Loans underwritten to Fannie/Freddie Guidelines
• Favorable Terms- Rates about 3/8% to 5/8% higher than owner occupied
• Investor loans differ from owner occupied loans
• SFR, duplexes, and quad plexes have different loan requirements/benefits
  
• What do I need for Down Payment?
• Standard loan is 20% down, bank financing 80%
• 10% down with MI or 2nd (from bank or seller)
• 90% LTV Max, but 80% LTV to avoid MI (Conventional)
• Loans above 90% will have higher interest rate (Portfolio loans)

Private Banking

• Banks or Private Investors that lend money NOT in accordance with conventional guidelines
• More of a commercial approach, more common sense
• Short Term - Hard Money Lenders
• Long Term-Alternative to conventional financing

Seller Financing

• Loans made by sellers themselves
• Everything is NEGOTIABLE
• 80/10/10-80% Conventional Loan, 10% Seller Financing 10% Down