Investment property financing

[New Lor]

Hello BP community! Total newbie here seeking some advice.

I have been told by my local financial institution that all of their loans for investment type properties require 25% down at this time. Does anyone have any recommendations for other institutions or other ways to finance a rental property. My situation is as follows.

60k annual income

25k available to put down

only debt is my car at $250 p/month

Excellent credit score 

Would like to see if there is any other conventional loan options that would allow a lower percentage down in order to maximize on what i have at the moment.

Am currently working with a local agent to find a duplex as a first investment property in the northern Madison, WI area.

I am completely new to real estate and have been doing tons of reading here on BP. I am still learning all the lingo and numbers but am finally in a good position to start investing. Look forward to hearing your ideas!

[Darren Budahn]

Your best option to get an investment property if you have minimal funds for a down payment would be to get an FHA loan. You can buy a duplex, triplex, or quad with only 3.5% down as long as you plan on living there.

Otherwise for a straight non owner occupied investment property I don't think you will be able to get in for less than a 25% down payment.

Of course if you have 25k that could be enough for a down payment on a duplex in the 50 to 70k range if you don't plan on living there. Make sure to have enough reserves.