How Difficult To Get 5% Conv

4 Replies

Hello BP,

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!

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 C. 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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