Purchasing an investment property with 5 % down?
Hi,
I'm very new to Real estate and I'm thinking about buying a condo here in Chicago. I'm quite aware most lenders won't finance an investment property unless I give a 20 % down payment.
I want to give a 5-10 % down payment on the condo I want to buy. My real estate agent found me a lender who could "work things out". After speaking to the lender, he told me he just won't tell the underwriter the reason I'm buying the property unless they asked so technically the underwriter will assume this property will be owner's occupied. The lender has been in the market for 15+ years.
I wanted to know if this is common or if there are any legal consequences? Last thing I want is to sign a contract and then lose the earnest money. Any advice would be greatly appreciated.
Dan