Is it possible to do 10% down on an investment property

Is it possible to do 10% down on an investment property

Real Estate Agent · Miami, FL · Member since 2014 · 24 posts · 0 votes

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?

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  • Owen DashnerPro Member
    Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
    11y

    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.

  • Real Estate Agent · Miami, FL · Member since 2014 · 24 posts · 0 votes
    11y

    @Owen Dashner Does the banks usually have to be local i.e. in state? not sure what the standard is.

  • Investor · Boyd, TX · Member since 2014 · 688 posts · 467 votes
    11y

    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.

  • Real Estate Investor · Alexandria, LA · Member since 2014 · 70 posts · 18 votes
    11y

    just remember when you invest with 10% you will need to factor in PMI into your budget. PMI could make or break a deal.

  • Owen DashnerPro Member
    Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
    11y

    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.  

  • Investor · Hampton Roads, VA · Member since 2014 · 1k+ posts · 418 votes
    11y

    @Shawn Burgess 

    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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