Down payments in Texas?

Question

I live in California and have been doing research to buy my first out of state investment in the Lubbock,TX Market.

I spoke to a lender that told me that Texas requires a 30% down on all REI properties.

Im just wondering if this is true throughout the state or if this is lender specific?

Joe Funari · Answer

@Jesse Hubble I recommend you reach out to my preferred lender, and fellow investor @Andrew Postell. He can secure a 30 year conventional loan for investment properties for only 20% down. But may be other factors you need to consider why a lender is asking for 30% down. But worth at least reaching out to Andrew. I, and many of my clients have used Andrew for many years here in the state of Texas. Hope this helps.

Raymond J. Rodrigues · Answer

@Jesse Hubble, that’s not true. I’ve assisted my clients with purchasing with as little as 15% down. 20% is usually what most investors put for down payment. Feel free to contact me if you need more information.

John Morgan · Answer

I’ve gotten most of my loans in TX with 20% down. But I’ve been putting 25-30% down the last 4 or 5 years due to low cash flow with only 20% down. And most lenders give you a much better rate with an extra 5-10% down I’ve found.

Robert Bleisch · Answer

I own and self manage this portfolio. Asking $13.5M. 7.3 Cap. Stabilized. 175doors.com.

Robert Bleisch · Answer

You can find 80% LTV financing all day long

Nicholas L. · Answer

@Jesse Hubble

just curious if you've been to Lubbock, have a network there, etc. and how you're trying to set yourself up for success.

Jesse Hubble · Answer

I am going conventional

AJ Exner · Answer

That sounds like a lender-specific rule, or potentially a requirement based on minimum DSCR needs (maybe 1.2).

If you have a deal, I would maybe check with a few other groups. Are you going conventional or trying to do DSCR?

Down payments in Texas?

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