If you are Pro you should answer this!

**The** · 08-09-2009, 02:15 PM

I need some pro advice here.

How can I get a loan for 100% of the purchase price of a property? I should mention that I have little to no net worth/collateral except for the property I would be purchasing.

Would I do something like a jumbo loan or hard money loan? How would I qualify in my situation?

Thanks.

**Greg** · 08-10-2009, 08:15 AM

Get out your phone book and pick up the phone. You need to talk to some lenders about this. Don't stop calling after you are told there are no 100% loans. There are some out there, you just have to find them and you have to qualify.

**markbrian** · 08-10-2009, 09:30 AM

USDA loan with an offer that has the seller paying all your closing costs is the closest to 100% that I know of.

**The** · 08-10-2009, 09:38 AM

The problem that I think I will have is qualifying for any loan even if I find one near 100%. I will need to work on a sales pitch of some sort to persuade a lender to see that it is a sound investment.

**markbrian** · 08-10-2009, 09:55 AM

There is no sales pitch you can give that will change the qualifying standards that lenders have. Either your credit score is high enough or it is not, either your Debt to Income ratio is acceptable or it is not.

I have to agree with Greg that you call and talk with local reputable lenders to see what is possible.

**REITrainingWhse** · 08-10-2009, 04:03 PM

Originally Posted by The

The problem that I think I will have is qualifying for any loan even if I find one near 100%. I will need to work on a sales pitch of some sort to persuade a lender to see that it is a sound investment.

Sounds like you have an issue with credit-worthiness... So, why do you NEED a 100% LTV note? Is it because you have nothing to put down?

It sounds like you either need to do one of the following:

1. Find a property, where the seller is providing RTO/Seller financing. That way, you get in the place without going to outside lenders.

2. Find a seller that will let you a$$ume their existing financing. Again, you are not qualifying for a note, and as long as you can afford the payments, all is fine... (Please note that I strongly advise you that you are an honest person, who does what they say and says what they intend to do, if you are going down this path, as you are now playing with the previous homeowner's credit.)

3. Find an institutional lender... What you were seeking before... But since I am A$$UMING that you need 100%, unless you have "GODLIKE" credit, those days have gone forever, but don't let me stop you from looking.

That is all I have to say at this time.

Later!

**The** · 08-11-2009, 08:50 AM

I will disclose why I want to try and find a loan that will cover 100% of the purchase price so people get an even better idea of my position. I do not have the money for any sort of down payment because I have just graduated from high school. I know what your thinking. You probably think I am an idiot. But the fact is ladies and gentlemen that I am very interested in real estate investing. You know what people say, "where there is a will there is a way."

Thank you to those who have answered my questions.

**markbrian** · 08-11-2009, 09:15 AM

I think you should really consider both what REITrainingWhse said and my advice. The USDA rural loan program is a great 100% possibility but the possibility of finding more creative ways to accomplish buying a home such as RTO or owner finance are also possible.

You show great potential by wanting to research and investigate the water before diving in. Keep on digging, educating and researching, it is possible. Nothing ventured, nothing gained.

**REITrainingWhse** · 08-11-2009, 01:09 PM

Originally Posted by The

I do not have the money for any sort of down payment because I have just graduated from high school. I know what your thinking. You probably think I am an idiot.

And WHY would you think that we would think that? Do you think that, or are you unsure of yourself? In anycase, that never crossed my mind. I think that is great, that you are starting out early... And during a time where you can get in dirt cheap, and come out filthy rich.

You just need to get the training to utilize (dare I say it) "Creative Negotiation."

Originally Posted by The

You know what people say, "where there is a will there is a way."

Sure that is true, but as long as you get the proper training... You can't jump off the Brooklyn Bridge, with the will to fly, and fly, you know... Now, if you understood the laws of aerodynamics, and prepared yourself with say a hand-glider, then you could fly off the Brooklyn Bridge.

So with that being said... Just having the will does not make one successful; you will still need to understand the underlying concepts to do it right. Otherwise the School of Hard Knocks will teach you, and it will be far more expensive.

Hope that helps... At least to where you now understand that you need a foundation to start building your empire on. And... Okay, I will say it for the million-and-oneth more time (and I tell all my students) you need to know where you want to go in RE, and how you plan to get there, before you invest one dime in RE. There are endless numbers of ways to leverage RE to your benefit, some will get you closer to your goals, some will not.

Later!

**jnzy111** · 08-11-2009, 03:10 PM

Try contacting mortgage brokers..

Mine calls me from time to time when he has some of his investors willing to sell their properties with cash back incentives. The cash back can then be used for the down..

If it's your first you should be able to qualify for FHA with as little as 3% down.

Problem solved.. start calling mortgage brokers.