Bank financing

8 Replies

If you have great credit 800+ will banks take less of a down payment? How much less?
I really don't want to march into a bank and ask if it's way out of line.

Daniel,

The answer to this question greatly depends on what type of real estate you are looking to purchase. I have purchased property for as little at 3% down for a single family home but when purchasing a 5+ unit property you will probably need to put down 25% to 30% no matter your credit score.

Thanks, single family is what I'm looking at.

@Stewart Beal were you about to get a 97% LTV loan from a bank on an investment property? Recently?

Jon,

No not recently. 97% was back in 2006 when things were really nuts.

So 5% is a more realistic LTV to expect?
How giving are they with repair costs
These days?

Daniel,

No. Conventional financing on a single family home will be 20% regardless if your credit score is 800.

However, the new guidelines allow 15% down on investment properties. If you go the 15% option you will have to pay PMI which, as an investor, you wouldn't want to pay.

Thanks again every little bit helps!

Most of the answers are not correct the right answer depends if your purchasing as a primary, second home, or investment property.

Yes there are mi companies who will do MI policies on rental properties to 85% loan to value however conventional lending requires 20% down no matter what your score, this applies to investment non owner occ. There are exceptions to this rule if the property is Fannie Mae owned you can acquire them for as little as 10% down but only SFR's while 2-4 units still requires 20-25-% down.

As a primary it used to be 97% ltv with conventional financing that number has been reduced to 95% ltv or min 5% as of November 2013.

Second home is min 10% down payment

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