Updated about 10 years ago on . Most recent reply
Minneapolis first time investor
Hi everyone, first I'm glad that I am a member of BP. This is my first property investment. My husband and I are looking for 2-4plex to invest in Twin city MN. We got approval a loan about $200k, and $70k cash. The bank asking down payment 25%, and interest 4.25%. My questions are:
1/ is that mean the maximum loan we can have after we put down payment 25% or $200k including the down payment?
2/ whatever it is, if we purchase a MFH with price higher than the loan a little that affordable to put down more cash. Should we do it?
3/ thought most of house investment from 1-4plex requires less than 25% down payment (or 20% ). Is that right? And the which ranges of interest rate is good for property investment?
Please any ideas, suggestions would be very appreciated. Thanks so much for your times.
Anna. N from Minneapolis
Most Popular Reply
You can essentially afford a $270,000 duplex/fourplex as 25% down is $67,500. 25% down is it is non owner occupied. If you live in one of the units, you could get much away with much less than 25%. 4.25% is pretty standard right now.
Have a great day