Minimum Down Payment for Out-of-State Investment?

15 Replies

Hello BP!

I live in New York and due to high real estate prices am interested in purchasing either a SFH or a small multi-family home out of state. I have spoken to a few different lenders and have gotten varied information on how much I would need to come up with for a down payment. I have been told as little as 15% and as high as 30%. I have excellent credit, a good job, no debt, roughly 60k in savings and will be looking for a loan between 100-150k. What is the minimum down payment that I should expect to pay?

Joe Vastola

    Sometimes you can find down payments as low as 15% but it is going to depend on the lender. Generally you are going to put down 20-25% to get the best rates from most lenders. As you have done though, you can contact lenders that you may use for the deals and they can give you their companies guidelines. There is no hard line rule but generally your downpayment will be 20-25%. Good Luck!

    Where we getting 15% down payments...? I'd plan on 25-30% (if you use 30 and it's only 25 the extra can help w/ closing costs).

    I would love to talk with your lenders who are offering 15% down. PM me their info. Thanks!!

    Jay Helms

    Originally posted by @Matt K. :

    @Chris Mason hook us up w/ 85% LTVs...

    85% LTV niches are SFR investment property where you don't care about the rate being on the higher end but still want a 30YF, and duplex owner occ.

    Chris Mason, Lender in CA (#1220177) and California (#1220177)

    Originally posted by @Chris Mason :
    Originally posted by @Matt K.:

    @Chris Mason hook us up w/ 85% LTVs...

    85% LTV niches are SFR investment property where you don't care about the rate being on the higher end but still want a 30YF, and duplex owner occ.

     How high we talking.... 

    15% down payment  for 1 unit. But lender will charge MI on  loan. 25%  down payment for 2-4 units. 

    Harjeet Bhatti, Lender in IL (#230554)

    @Jay Helms @Matt K. Thanks guys, I talked to a handful of large mortgage companies to see the rates but I was told by a rep at Quicken Loans 15% and that was on a 170k loan.

    Joe Vastola

      Originally posted by @Joe Vastola :

      @Jay Helms @Matt K. Thanks guys, I talked to a handful of large mortgage companies to see the rates but I was told by a rep at Quicken Loans 15% and that was on a 170k loan.

       DO NOT USE QUICKEN..... they are notorious for giving bad info and it'll all come up during close when you can't get your loan funded. I don't say this as a knock against quicken, but they are not suited for investors.

      Originally posted by @Matt K. :
      Originally posted by @Joe Vastola:

      @Jay Helms @Matt K. Thanks guys, I talked to a handful of large mortgage companies to see the rates but I was told by a rep at Quicken Loans 15% and that was on a 170k loan.

       DO NOT USE QUICKEN..... they are notorious for giving bad info and it'll all come up during close when you can't get your loan funded. I don't say this as a knock against quicken, but they are not suited for investors.

       I’ve heard that. My broker has talked about multiple nightmare closings due to Quicken. #RocketCrash

      Jay Helms

      @Matt K. Thanks for the heads up Matt, better to pay a little more down and avoid issues. Will keep searching.

      Joe Vastola

        Originally posted by @Joe Vastola :

        @Matt K. Thanks for the heads up Matt, better to pay a little more down and avoid issues. Will keep searching.

         Use a reliable investor friendly lender and build a relationship with them. Many lenders are multiple states and there's probably plenty to chose from on here..

        I’ve normally heard 20-30%. I’ve owner financed out of state for 15% but not heard of it from a lender.

        Jordan Moorhead, Real Estate Agent in MN (#40542303)

          You can do 15 percent down on single family investment. They just charge PMI until you hit 20 percent.

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