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Updated over 10 years ago on . Most recent reply
Mandatory 15% down for multi-unit property in NJ??
Hello All,
I am looking to purchase my first investment rental property in NJ. I am looking at both single and multi unit properties. A friend of mine who is a mortgage consultant, states that a minimum down payment of 15% is necessary for a multi-unit property (not sure if that only applies to NJ or not). He is the only mortgage/loan officer I have spoken with to date. I will definitely seek info/advice from other mortgage advisers but I figured I'd pose the question on BP for further insight. If 15% is not the mandatory minimum down payment, does anyone know any other creative finance options that may be available for purchasing multi-unit properties??
I apologize if I left out any pertinent information. I'm new here.
Thanks in advance...!
Most Popular Reply

The lower downpayment options that are available from most lenders are for owner occupied properties. Any time you are non-owner occupied you will be looking at a much higher downpayment. There is no one number that is "mandatory" though, lenders use their own criteria. But 15% down is pretty darn good from a bank lender. Your best bet to get around that is to find a seller financed deal, if you can.