Down payment requirement question

[Eric Tilson]

In everyones experience which banks offer the lowest down payment on conventional loans for investment properties? The bank I use requires 25%, is that customary or relatively high?

[Ronald Allen Barney]

It doesn't so much differentiate by bank but rather a given bank's level of confidence in you or your capital group's ability to stay afloat in your investment venture and continue to service the loan if unforeseen problems come along. If it's your first time buy and hold property and your employment income is iffy they are probably only going to go 70% LTV (where the V is appraised value not purchase price). Someone like Robert Kiyosaki they may go as high as 85% LTV because it's a pretty fair assumption one bad deal is not going to bring him down. The mean high for investors that have a strong track record and pretty good cash flow will be 80% LTV.