80% LTV

Comments(10)

• 
  Brandon20021st December, 2003

  I don't think you do.

• 
  Marcher1st December, 2003

  In most cases I think the lender will offer 80% of the purchase price, which may be less than FMV. I guess they refer to this as 80% LTV, slightly different from the investor speak usage. There are programs that will offer 80% of the appraised value (and higher), in which case you wouldn't need a down payment.

• 
  killenjw1st December, 2003

  I am trying to buy a property that is appox. 58% of the FMV and the lender I am talking to still wants at least 10% on an 80 LTV. It doesn't make sense to me either.
  
  Jim

• 
  jeff120021st December, 2003

  OORAH!
  I'm obviously not aware of your financial situation, but My question is this. Why not use your VA Benefits? After a short period of time you could refinance, pull some cash out if desired, and once your VA loan has ben paid from the proceeds of the refi, you could do it all over again.
  And thank you for doing your day job!
  Formerly a part of 3d Battalion, 10th Marines,
  Jeff

• 
  edmeyer1st December, 2003

  Lenders typically will lend on 80% of the lower of appraised value or contract price on a purchase. If you can swing it you might want to buy with cash and then refi against appraised value. This way you can finance all of your cash back out. You might also borrow the money for the initial purchase if you can.

• 
  killenjw1st December, 2003

  I was looking into that actually. I want to use my VA to buy a house for my wife, daughter, and myself. Buy with about 20k in equity already in the house and use that to fund my start up. I am just a little concerned about buying a house for myself. That part didn't dawn on me untli a few days ago. I know I know you don't even have to say it.
  Getting ready to go back to you know where so pardon me if I don't have an oorah in me but Semper Fi,
  
  Jim <IMG SRC="images/forum/smilies/icon_smile.gif"> [ Edited by killenjw on Date 12/01/2003 ]

• 
  jeff120021st December, 2003

  Good luck over there and be safe. Make sure you come back in one piece and with everything working right. Semper FI

• 
  MidWest_Investor1st December, 2003

  killenjw,
  
  It depends upon your lender and your pesonal relationship with the lender, but most want you to have some skin in the game so you have some risk out there in addition to them.
  
  That's my experience at least...

• 
  jonesoe302nd December, 2003

  Quote:
  On 2003-12-01 23:18, killenjw wrote:
  If I am purchasing a home for 65% LTV with a loan that states 80% LTV why do I still need a 20% downpayment? Just curious. Maybe Tax Sales is a good place to start. <IMG SRC="images/forum/smilies/icon_confused.gif">
  
  <font size=-1>[ Edited by killenjw on Date 12/01/2003 ]</font>
  
  I believe you're getting the LTV's confused. You're purchasing the property at 65% loan to value, right? Stating it another way is saying that you're buying a house at 65% of what its FMV is. Now, you go to the bank for a loan to purchase this house. In my experience with conventional banks they give you a loan based off of the purchase price. Therefore Mr. Banker is funding you an 80% loan of the purchase price and you come out of pocket with the 20%.
  Example: FMV = $100,00
  Purchase price = $65,000 (65% LTV)
  Loan at 80% = $52,000
  You pay 20% = $13,000
  
  I don't know the specifics of the deal or whether you're trying to quick-turn or hold long-term this property but yo may want to see if a hard money lendr may be better for you? Good Luck!

• 
  blhull4th December, 2003

  Quote:
  On 2003-12-01 23:34, edmeyer wrote:
  Lenders typically will lend on 80% of the lower of appraised value or contract price on a purchase. If you can swing it you might want to buy with cash and then refi against appraised value. This way you can finance all of your cash back out. You might also borrow the money for the initial purchase if you can.
  
  
  edmeyer, I think you may be answering a question that I have been trying to figure out. I currently hold a title free and clear (well, according to the bank it's clear... I have an investor) to a fixer-upper. I've decided I'd like to keep the property to rent out. Should I be able to get 100% financing for this property?
  
  killenjw, I hope you don't mind the imposition on your post...Thank you for your sacrifice for our country!!![ Edited by blhull on Date 12/04/2003 ]