Hello, 

I have listened to some podcasts that feature investors that have worked with banks that have funded there loans for a multi family property for less then 25 percent down. I am calling around and talking to lenders but I am still getting the standard answer of having to put 25 percent down. I know Seller Financing would be an alternative but that is difficult to come by, should  I be calling Hard Money lenders, I still want a good interest rate as I am a buy and hold investor so I need a longer term and no balloon payments. Has anyone had luck finding backs that are flexible on the down payment? They would need to fund the loan themselves and not sell of to Fannie or Freddie.

Curious to hear others experiences.

Thank you

So typically the banks that offer fixed interest rates are underwritten by Fannie/Freddie. You'll have better luck looking into commercial financing at a small bank. These banks almost always keep their notes in house, but they also almost always require some version of a balloon payment or rate adjustment after a few years. This isn't usually a big deal and is super common in the investment space. These are the same banks that will loan based on ARV rather than purchase price and do some other creative stuff. Your best bet is to ask the investors in your local area what bankers they are using to fund deals and what terms they are getting.

Would it be better to find a lender in the area I am looking to buy in or the area I live in or does it matter?