Don't have 20% down but now is the Time! How can I start investing?

Question

My husband and I would like to invest in a small rental home nearby for roughly $100K.  Do banking institutions still loan down payments as reasonable rates?  We have excellent credit and very low debt to income ratio.  What are the advantages/disadvantages of doing it this way?

Aaron Mazzrillo · Answer

I purchased my first property with two small loans from 2 family members. I don't think banks will lend a down payment. I've actually only heard of things like this from investors that are quite old now and it usually is right after they say something like "Back in the good ol' days..."

Joel A. · Answer

If you currently have a home where you live in, it would probably be a better option for you to rent that house out, then get a new loan as a primary residence where you can take advantage of a 3% down payment from FHA.

This would only work though if you could make good cash flow from your current home.   And then just make sure that the new home you move into is one you could rent in the future.  From there you build.

Im not familiar with any conventional lenders that do less then 20% on investment loans.

If you cant do it now, then the best option is probably just to start saving until you are financially capable.