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?
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.
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!
First I heard of beginner investor rates on single family home
but who knows maybe that is standard
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.