Anyone here know any lender (small bank, CU, large bank, no hard lenders) who will lend in individual name less than 15% down for a secondary mortgage (non-primary residence)?
We've found SunTrust (ticker symbol: STI, $30B+ publicly traded company) to be the only one so far who allows 15% down.
Any info would be helpful. We've 4 partners so we can leverage this concept. We own rentals in the Des Moines, Iowa area.
Thanks! - BH
@Becky Hiu 15% is minimum requirement for 1 unit for investment purpose under conventional loan.
What Harjeet mentions is accurate, and I've found many banks in central Iowa won't lend for less than 20% down as bank policy. I can refer you to a great mortgage broker if you are looking to get pre-approved. Feel free to reach out.
@Rick Mapes - 20% or 15% down? We'll be sticking with 15% for our ROI purposes despite certain elevated risks (should be able to weather it due to # of partners). If 15%, please pass my way.
The broker I work with requires 20% down. Keep in mind you'll be behind PMI which will impact your ROI as well, just not as immediately as the down payment. I know as a finance person you understand that, but maybe for others reading that'd be a useful thing to consider. Good luck!
@Rick Mapes - Yep, we've taken all that, including appreciation and inflation expectations, other sensitivity variables into account as well. Thanks for checking!