Found our first deal and they have accepted our offer. It’s a single family and will be purchasing for $105k. Our lender has said we can do 15% down, and seller is paying $2k of closing, so total to come to the table with is right around $20k. Interest rate is 6%. Is this normal or are there other options I should explore for financing? We plan to keep, rent out, and make tiny improvements along the way (mainly cosmetic). Any input is appreciated!
It depends on your credit score, cash reserves, income, credit history, etc. You can probably get a better rate if you put more down, 20 or 25%, that's what I do. Usually helps by like a quarter point.
I would not borrow 85% to fund a house I was going to rent out.
I am sure many will not agree with me here, but I would not rent out a house I owned significantly on.
We are looking at doing 25% down now