5% Down Condos

For condo's I don't really think there are rules. It's what your bank will loan you. And I doubt any institutional will let you do 5% down these days! How much do you have saved? Are you working with a broker?

As a mortgage broker, I can get financing for a 5% down scenario. However the price of the condo can't be more than $1.2 Million. What I do is secure a first mortgage and a HELOC from a wholesale lender. There is no mortgage insurance required. Also there are no reserve requirements. This is a great product.

Email me with any questions.
Ellen Silverman
Mortgage Broker, NMLS #60631
Since 1990
esfundingco@aol.com

... and all these products takes us back to the year 2008

Fannie Mae has always had no reserve requirements for their loans including the high balance loans. This Fannie Mae product never changed after the financial crisis. The loans that precipated the crisis were subprime loans which had no down payments, no income verifications, and no employment verifications.

Ellen,

Is there non-recourse financing available on individual condo units 30% down with sufficient debt service coverage from rental and 1 year reserve? If so, appx what rate for 5/1 arm?

I realize that non-recourse is very common on multi-family with DSCR 125% or so.

Thanks

Mercer, it may be possible to get a non recourse loan on a condo if it was in the name of an LLC or a corporation. As far as what the rate would be, that would depend on how much income the property can generate. I would have to check on the reserve requirement. I have two different lenders for this type of loan; one wants to see bank statements, the other lender just wants to see a lease. The bank statement lender has a lower rate, probably in the low fives.

Thanks a lot. I will keep that in mind. Given the 5% hurdle, which is roughly 2% over with recourse, I may not use this option for now.