Anyone have expierence with this? I have duplex property under contract for 67k. I would like to put 10% down. Is this possible if not anyone have any creative solutions that they have used?
Yes, it is possible. If you are going the bank route (and intend on holding it longer term), I would start calling your smaller local banks and credit unions and ask about their terms. You'll likely need to find a portfolio lender (one who keeps the loans in house instead of selling on secondary market). They have more flexibility on terms.
@Owen D. Does the banks usually have to be local i.e. in state? not sure what the standard is.
I was just listening to Podcast 64 tis morning and heard that you can do this with a HomePath loan but it has to be on a HomePath property (Fannie Mae). The ones I have looked at have been a bit above retail price from what I have seen.
just remember when you invest with 10% you will need to factor in PMI into your budget. PMI could make or break a deal.
Shawn, in my experience you will have better luck with local (and possibly regional) banks/credit unions. They generally like to lend to their own communities and are more likely to do portfolio loans.
I am closing on a property next week. I was going to do 15% down, but the PMI was ridiculous. Basically, they see an investment loan and jack the PMI up which doesn't make it worth it IMO. I paid 20% down instead.
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