Where is a good place to get a loan for an investment property with no money to put down?

I am very interested in buying a real estate investment property for about 130 k. I am 21 years old and make about 25-30k per year. I really dont have much money to put down. Has anyone ever done something like this before and who would you recommend?

There are tons of mortgage companies you can try, but you will pay a high rate and they probably will only give you about 4x time your income as the max mortgage. Also, watch those closing costs. Good luck!

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Yes, you can qualify for 100% financing for an investment property, depending on your credit & income. The interest rate will be high--often prohibitively so. Call me if you'd like to see if can qualify.

Rick Lanicek
www.primelendingonline.com

Lender will give you money for sure. Probably charge you a higher interests rate and extra insurance on the loan for not having the down payment.

Would you consider delaying your plan? Professional investors are careful in choosing each investment that would be near or immediately cash flow positive. With overpriced housing market, that is not possbile.

For example, it costs $500,000 to $550,000 to buy a two bedroom units in Sunnyvale California. Mortgage monthly payment with nothing down is $3500 to $4000 a month with 7% APR. The rent one can collect from such unit would be $2000 a month. Therefore, for each unit you buy, you would lose $1500 a month.

* We assume tax benefits would cancel out with tax and maintenance fee. Please consult your CPA.
**If you have large down payement, the rate may be lowered.

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If you still want to act on your plan now, at least ask for discount on getting the house (except Texas and Seattle).

In most area of the U.S., housing price stopped going up as inventory continues to build up. It is normal to see a correction as a boom that lasted for several years.

If you are investing new money in to real estate, this may not be a good time as the potential return on investment is small compare to the high risk of lower home price.

If you are doing a side way move, meaning you are selling one to buy another one, then it is acceptable.

Nothing is absolute, but housing market is very likely undergoing a correction and this is only the beginning. Some say this would be a soft landing (0 to 10%). Some say a big crashing is coming (10 to 20%).

http://money.cnn.com/2006/08/24/news/eco...
http://money.cnn.com/2006/08/23/news/eco...

I suspect that you being 21 you don't presently own a home. You did not say how many units were in the investment property. The best way to buy your investment property is to buy 1-4 and live in one of them. This will make your investment property an owner occupied property, easy to qualify for a conventional loan.

Your credit scores, debt to income ratio and other factors will determine if you can get a 100% financing loan.

I recommend that you take your pay stubs, w-2 and income tax for 2 yrs as well as 6 months bank statements to include any 401k plan or profit sharing from your employer to a mortgage broker. They will take the documents, pull a credit report, after which they can tell you the type of loan you are qualified for and if you need to bring any money at all to the transaction.

I hope this has been of some use to you, good luck.

"FIGHT ON"