Where Do I Get a Student Rental Financed?
by Daniel Lynes
(Hamilton, ON, Canada)
I'd like to be able to purchase some student rentals around the McMaster University area.
However, as soon as the banks hear that it's a student rental, they say, 'No Way!'
I've found a niche market lender that lends on student rentals, but they want 75% LTV, 1 point at closing, 1 or 2 year closed term, and 4.44/5.0% fixed interest rate, even when I've told them I'm planning to live there.
I don't have a problem with the 1 or 2 year term, although I'm not big on it, and I have even less of a problem with the interest rate (although my wife hates it...she wanted variable rate), but we have a problem with the 1 pt and the 75% LTV.
We wanted to get an 85% or 90% LTV mortgage, or an 80% LTV mortgage where we could use our line of credit to partially finance the down payment.
Where the problem lies is that the lender is saying they need 25% down, and we'd like to come up with 10% to 15% down, or come up to 20% down, using LOC's and/or low interest rate credit card specials.
Do you happen to know any we could talk to, to get preapproved for student rentals?