Buying additional investment real estate w/ loan

2 Replies

I own multiple rental properties and now interested to aquire another piece. Bank just told me that I might require to pay up to 30% of downpayment because I own multiple properties. How does everyone do their finance in this situation? I am going through typical home mortgage loan right now, is it better to apply a business loan instead? thanks in advance for any input (this is in DFW area if that helps)

Welcome to BP!

Generally a business loan (via commercial lender) will require as much or more down payment than a "typical home mortgage loan" as you call it. The typical loan will be a Fannie Mae or Freddie Mac loan and it is difficult to avoid down payments for Non-Owner Occupied property.

Other investors may use other collateral or lines of credit for down payments. Some will buy with cash, then fix, rent, season, and refinance to try to maximize loan proceeds. Not as easy now as it was 5+ years ago.

@Chris Martin  

Thanks, good to know those terms.  I will look into them and hoping to find one that works for me.  Sorry about the late reply, I started as a newbie on BP and wasn't too familiar w/ the system/notice earlier.

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