Just getting started

[David Yandel]

Hey all, thanks for all the knowledge and insight on this forum! 

My question is, we are just starting out and looking for ALL options to get started with our first rental property. 

My wife keeps telling me about a $0 down payment loan option that she’s been hearing about where if you can show that the rent will be greater than the mortgage, this type of loan will require $0 down or lower than the 20/25% requirement. 

I have been doing some digging, but I cannot find anything on this type of loan. Does anyone know where I can find information on this? Or, is this not a thing that is just click bate? 

Thanks! 

[Simon Ashbaugh]

Hey David, the type of loan your wife mentioned isn't available in the traditional lending market as far as I'm aware. This may be due to a misunderstanding of existing options.

FHA loans: Require a 3.5% down payment for investment properties with multiple units, but you must live in one unit.
VA loans: Offer 0% down for veterans, but again, occupancy in one unit is mandatory.

While some private lenders might offer lower down payments around 15-20%, they typically come with stricter requirements and higher interest rates. Hope this helps!