Investment property down payment

[Yossi F.]

All,

       What is the latest down payment requirement for an residential investment property in the New York area? Specifically a property with two houses on it (i.e. a multi-family property but not a multi-family building).  I am not referring to raising the actual down payment funds. I am hearing 30% these days. Is there any way to reduce this even though it won't be a primary residence? Any regular or creative way? Even with PMI?

Thanks for all the help,

Yossi

[George Despotopoulos]

Hi @Yossi F. a fellow New Yorker! 

It depends who you're going to for financing. Usually on purchase money it's 25% or 20% down; but to confirm, we're talking non-owner occupied investment property-- you wouldn't be able to live in it as your primary or secondary residence. Also some lenders put restrictions that you can't have family in it either, as it would tend then to be seen as a consumer loan/consumer purpose.

There's definitely a regular way. Non-bank lenders, can offer this, the interest rates are little higher, but the good thing is the process is much less of a hassle and straightforward. Usually you close much quicker. And, personal income check is not required, the loan is underwritten to the underlying property's rental income.