Beginner financing rates and terms

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Beginner financing rates and terms

Nicholas J. Sciamanda
Erie, PA · Member since 2019 · 2 posts · 0 votes

I am starting my journey to financial freedom and have been reading and networking. Anyways, in reaching out to my loan officer (who I have my current residential mortgage through), I was told that standard terms for beginner investors with their bank is 35% down and a 15 year term. Is this pretty standard when going through a traditional bank?

Thanks,

Nick

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  • Dan M.
    Real Estate Investor · Unadilla NY · Member since 2017 · 418 posts · 297 votes
    5y

    All banks are different call around to a few more and talk to some people. Big banks and little banks.

    My standard is 20% down on a 20 year term but I am in NY not PA. 

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  • Torrell Palmason
    Lender · Winlock, WA · Member since 2020 · 124 posts · 82 votes
    5y

    Fannie/Freddie are 15% down on a single family non-owner occupied and 2-4 units are 25% down. This is the same if it is your 1st deal or 100th deal. Just get with a lender that follow Fannie/ Freddie guidelines.

    Best of Luck!

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  • Michael Plante
    Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    5y

    First I heard of beginner investor rates on single family home 


    but who knows maybe that is standard 

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  • George DespotopoulosBusiness Member
    Lender · New York, NY · Member since 2016 · 936 posts · 287 votes
    5y

    Non-bank direct lenders could lend to you @ 20% down as long as the loan amount is $100k+ and your FICO score is 680+. If your FICO score is 640-679, then I'd expect to put 5% - 10% more down. The downpayment should be coming from you and not in the form of a seller-second, gift funds, or unsecured loan. This would be for a 30 year fixed with rates in the 4.875% - 5.875% range. 

    If you're looking to do a fix and flip or rehab & hold deal, then it's likely 20% down and rates in the 8.5% - 9.75% range for a 12 month term, no prepayment penalty, where you make monthly payments of interest-only. 

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