Updated over 4 years ago on . Most recent reply
Is 20% down needed for non-homestead duplex?
Hello everyone!
First time poster here! My husband and I live in MN, and would love to buy a duplex as an investment property. We are currently homesteading a single family home, which we have been renovating and not quite ready to sell. Do we NEED a 20% down payment since it will be an investment property? Or can we do a conventional loan with a lower down payment? Thanks in advance for the help!
Most Popular Reply
@Katie Esmay I'm literally going through a cash-out refi currently. A HELOC was the other option we considered, we ended up doing the refi since rates have gone down since we obtained our mortgage (so we decided paying fees once was better than twice).
Honestly having our downpayment from a HELOC might have been a better route since we can pay it down then utilize it again for our next property, but since we're moving forward I'm not going to complain about it.
Another important datum is we have so much equity in our primary dwelling that an appraisal wasn’t needed so the refi will end up being a very quick process.
PS, our home is also homesteaded.