I've been reading articles like this:
I bought an 3 family and had to put 25% down. Are lower downpayment mortgages really coming back?
If it's owner-occupied, you can get a VA loan for $0 if you qualify. Owner-occupied can also qualify for FHA loans which require 3.5% down and if you couple that some State and County down payment grant programs, you can pay as little as 0.5% down. Work with a mortgage broker who has access to various loan products from various companies.
When it comes to investment properties, 1st mortgages are going to loan up to 65%-75% LTV. You can get a 2nd mortgage towards the remaining down payment, including seller financing. Be creative and again work with mortgage brokers who deal with investors and find creative solutions.
God Bless You!
It's all negotiable, especially when dealing with a motivated seller..Patience is key!
Interesting...I thought you weren't allowed to get additional loans for the down payment?
Alex - if you are buying distressed properties, you should also learn about hard money. These loans are based on 70% of the ARV / appraisal, and after you get them rehabbed and rented, you can refinance 75% of the after repair appraisal. Often this means that your captured equity (difference between purchase and after repair appraisal) covers your downpayment or at least a large chunk of it. You get better leverage and have less cash out of pocket. Check with other investors in your area to find out who the hard money lenders are.
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