I am trying to stretch my buying power by ideally using conventional loans for rental properties with 10% down (if this exists). Thus looking for a situation where I can move away from PMI once there is more than 20% equity in the home. From all the loan brokers and banks that I have spoken to, I have only been able to purchase my previous properties with 20% down -- a requirement for investment properties. I primarily invest in Indiana and Mississippi.
Wondering if there are any alternatives or any area where I am not looking and should be.
Separately, if there any small banks and loan officers from that anyone can refer to me in these two markets, I would very much appreciate it.
@Richard Bull , it's a minimum of 15% down (or 25-30%, if it's not an SFR).
Thanks @Brent Coombs Just looking for ways to stretch that dollar while rates continue to be low and save my cash for when the correction comes. Will look into the 15% option.
from my experience in the two markets and I am quite active in both.. small commercial banks generally will not lend to anyone who does not live in the community.. ergo that's why they are called community banks.. Unless your experience balance sheet and income dictate a deviation from the norm.
national lenders are still the best bet they don't have the 100 mile rule.
15% down payment for 1 unit but lender will charge MI.
25% for 2-4 units.
@Jay Hinrichs thank you for your great feedback and expertise as usual. Local banks will most likely be off the table for me since I am from California.
@Harjeet Bhatti thank you, I will have to make a the decision if it is better to keep more cash for the next deal and not make as much positive cash flow with a 15% down + MI (may not be worth it). It will all depend on the specific deal - case by case.
Thank you @Brent Coombs @Jay Hinrichs @Harjeet Bhatti for confirming this info!
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