Investing in rental properties and typical down payments

Investing in rental properties and typical down payments

Rental Property Investor · Sejong Daero, Seoul · Member since 2021 · 11 posts · 1 vote

Good morning,

I’m a new want to be investor. I’m trying to research different, creative ways to financing without large down payments. I’ve been asked for 25% down payment for a duplex. Is this normal? Thanks

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    5y

    Asked by who?

  • Rental Property Investor · Orlando, FL · Member since 2016 · 135 posts · 145 votes
    5y

    @Michelle Lancaster lots of banks will ask you for 25% down on a duplex or larger. But not all. Try calling around, especially to smaller local banks. Some of them will have more flexibility

  • Rental Property Investor · Sejong Daero, Seoul · Member since 2021 · 11 posts · 1 vote
    5y

    @Joe Villeneuve banks.

  • Rental Property Investor · Sejong Daero, Seoul · Member since 2021 · 11 posts · 1 vote
    5y

    @Tesho Akindele thanks! I appreciate your response. I’ll continue to shop around.

  • Member since 2020 · 14 posts · 6 votes
    5y

    @Michelle Lancaster Hi Michelle, like @Tesho Akindele said, many banks will ask for 25% down for an investment property, but keep looking. The 5th small, local bank I talked to this week offered 20% down on a 30 year fixed. Many commercial products offer 20% down as well, but are typically a 5 year ARM with a 15 or 20 year amortization, at least in my area. Also, if you are considering moving into the property to house hack, many banks will offer 5% down on a conventional loan, or 3.5% if you qualify for FHA. Good luck finding the product that works for you!

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