'No Money Down' is the holy grail of real estate investing, but how do you attain this? Our special program can help obtain this for you.
First, we need to understand what CLTV is: it stands for combined loan to value. This is different than LTV or loan to value. 100% CLTV means that all loans combined equal out to 100% of the purchase price. The majority of lenders will only lend a certain % of your purchase price, and you are required to provide the balance in cash down payment, or 'skin in the game.' This is why our program is so special, as our lenders do not require a cash down payment.
The way our program works is simply this: we fund 55% of a purchase price, and we allow the seller to hold a second mortgage of 45%; therefore, the combined loans equal 100% of your purchase price, i.e., NO MONEY DOWN!! It is also important to understand that you will have loan closing costs, and these can be paid out of pocket, or you can request the seller pay your costs.
Our program is not credit-driven, but a credit report will be obtained, and we will need to have an appraisal completed, which you will be required to pay for. The most important criterion the lender will look closely at is that the property must meet the debt service of all loans.