Updated about 11 years ago on . Most recent reply
Mortgage options
Hello BP, I have a question about mortgage options for a rental property. I would like to find a house for under 150k to rent but I don't know much about the mortgages that I can use. I can't rent out a house with a FHA loan, so thats out. Is conventional the only way to go? I have an excellent credit score, am I able to get a conventional mortgage for less than 20 % down? Any input is appreciated.
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@Tyler Dunlap if you go the conventional route, most banks will require you to put down 25% on an investment property. So 37.5k on a $150,000 home. If you have that amount saved up for the DP a conventional loan will allow you to get a fixed 30 yr rate. Expect the rate to be slightly higher that what is on the sites, usually .5 or 1% higher than the normal interest rate. Hope this helps and good luck!