Putting down 15%????

Question

Diana T. · Answer

I can’t even find15%. Who is offering this?

Grant Schroeder · Answer

@Sean Bramble @Adam Philpot Thank you for posting about this! 10% down and no MI investment properties loans are available. Conventional investment loans require 15% down with MI for a 1 unit as Jay Hurst said, and 25% down on a 2-4 unit. At Academy Mortgage, we have a 10% down and no MI 30 year fixed investment loan for 1-4 unit properties that we portfolio on our books. It is underwritten per conventional guidelines so we are still looking at DTI, FICO, and Assets/Reserves, but since we keep the loan on our own books instead of a conventional loan that goes back to Fannie/Freddie, we can offer better interest rates and LTVs. Many of the BP investors who have left reviews on my BP Profile have used this investment loan solution to supercharge their rental portfolios these past couple years in states like WA, OR, ID, and AZ specifically. I am glad to talk about this more if any one is interested. I have helped a lot of investors with this loan solution and used it to grow my own rental portfolio as well.

Jay Hurst · Answer

15% down is available for full doc conventional financing AND debt service coverage ratio loan for single family homes.  You do have to have decent credit for both options but fully available. 10% would have to be a portfolio loan that there is likely more to the story the simply 10% down.

Sean Bramble · Answer

Same question ... where do I find a 15% down commercial loan (for an STR purchase)? I'm currently looking at 20% DSCR-based loans through private money lenders since I don't have a W2, but recently keep hearing about people using 15% down loans and am intrigued ...

I saw recently that David Green & Rob are using a 15% down loan product for their Arizona luxury STR purchase

Jay Hurst · Answer

But, do need to clarify, the 15% DSCR loan would NOT be available for for a first time investor. (would have to have at least 12 months of history) but the full documentation conventional loan would be fine for a first time investor.

Melissa Richard · Answer

It may just be owner-occupied.

Russell Brazil · Answer

The minimum for a conventional loan is 15%. However commercial products will have much more variance. I imagine anyone putting down 10% using a commercial loan product likely has a number of loans already with the issuing bank.

Putting down 15%????

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