Minimum down payment

2 Replies

Would it be reasonable to get a loan for 5% down for a rental property? Here is an example:

Foreclosed Property

Property valued in the $150-160k range

Asking price is $99,900

If I only put down 5% the LTV would still be less than 80% correct? If this is possible would they still require PMI?

I am planning on sitting down with lenders soon, but just wanted to get some more info first.

Thanks

Originally posted by @Robert Gavlas :

Would it be reasonable to get a loan for 5% down for a rental property? Here is an example:

Foreclosed Property

Property valued in the $150-160k range

Asking price is $99,900

If I only put down 5% the LTV would still be less than 80% correct? If this is possible would they still require PMI?

I am planning on sitting down with lenders soon, but just wanted to get some more info first.

Thanks

Nope. LTV is based on value. Value is the lesser of purchase price or appraisal number.

On a refinance six months after purchase, only appraised value is used to determine LTV.

Also, there are no 95% LTV investment property mortgages on the market at present.