you can do 20%. I recently did a loan for a borrower with a 20% down conventional
@Carlos Caloca - we put 20% Dow on the first four properties and now the banks want 25-30% but I believe 20% will do the trick on the first few deals. Good Luck 👍🏻
I bought 2 x fourplexes earlier this year with conventional 30y fixed loans. Chase made me put 25% down because I told them it was an investment property. But if I was moving into one of the units as my primary residence I could put 20% down. It depends on the lender and the type of loan.
Hi Joel - this is correct and this a Fannie Mae and Freddie Mac guideline. Not a lender guideline.
Thanks for the replies guys! So is there another way to get a 2-4 unit with a lower down payment other than FHA?
25% down payment 2-4 units for investment property.
Hi Carlos - With a conventional lender, you will be looking at 25% down for an investment property. You can go the private lender route, which sometimes will allow close to 90% of purchase price for financing. There are creative financing solutions based on what goals you are trying to accomplish.
I've heard Credit Unions offer lower downpayment options
@Carlos Caloca - There is a 5% down conventional loan program if you owner occupy. It's availability and income requirements depend on the census tract but you can check the address here
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