Diligent researcher here, in the beginning of my acquiring knowledge phase. I have a question in regard to the 5% Conventional loan. Is this a hard loan to obtain? I have heard it is pretty rare, but it is the loan I want to utilize on my first real rental property purchase. What are good "to-knows" in reference to this loan?
I appreciate you reading this in advance and happy investing!
@Devante Boll - It has normal credit and DTI requirements like any conforming loan - but it is only available in certain census tracks
Any conventional loan less than 20-25% down is for an owner occupied home only.
Do you mean 5% down payment? As long as the property is owner occupied then you can put 5% down, that what i did for my second property and turn the first one to rental.
@Brie Schmidt Thank you for the reply and link. Definitely will put it to use.
@Wayne Brooks I did not know it had to be owner occupied.. I appreciate the insight.
@Niki Cao Correct, I did mean 5% down. Sounds like it worked out well. My aim is to utilize it for my first property. I presume same guidelines apply, must be occupied for 6 months to 1 year to not "raise eyebrows."
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