Conventional Mortgage 20% Down

[Keith John]

I contacted my bank to have them begin a preapproval for a conventional loan. I told them that I was going to keep my current home and buy a duplex as an investment property. I was informed that the MIP/PMI companies would not provide mortgage insurance on an investment property, so I would have to put down 20%. Is this correct? I'm certain other investors from BP have put down as little as 3.5%.

[Upen Patel]

@Keith John the banker is correct. If you want a conventional loan for an investment property then you will need to put 20-25% down (depending on the lender). You might be able to find a lender who will do a conventional investment property loan for less then 20%, but certainly not 3.5%.

The 3.5% you are referring to is an FHA loan. You can only get a FHA loan for an owner occupied property.

Upen Patel
Mortgage Banker