Real Estate Broker · Dallas · Member since 2018 · 4 posts · 0 votes
Hi BP Community,
I'm looking for lenders that can do low money down (5-10%) on 1-4 unit rental property purchases in the DFW area of TX. Would love to discuss any options available so please send any recommendations.
@Sean Thomas doubt you will find a lender that will have a product for rentals with that a low of down payment. Plus, typically you have to pay PMI on that low of a down payment. But reach out to @Andrew Postell. Andrew is a fellow investor and my preferred lender I recommend to all my clients here in the DFW area. It's worth at least reaching out to him to explore your options.
@Sean Thomas doubt you will find a lender that will have a product for rentals with that a low of down payment. Plus, typically you have to pay PMI on that low of a down payment. But reach out to @Andrew Postell. Andrew is a fellow investor and my preferred lender I recommend to all my clients here in the DFW area. It's worth at least reaching out to him to explore your options.
@Sean Thomas a standard conventional Fannie/Freddie primary home loan for a 2-4 unit is 15% down. And that's for a primary home. For a single family home 15% down is possible in the Fannie/Freddie world but not in the 2-4 unit space. As mentioned above there used to be ONE lender that offered 15% down on a 2-4 unit...but they don't offer it anymore. It's just not realistic to find that right now.....which is the entire reason why we use the BRRRR method.
Keep in mind that FHA does allow you to purchase a 2-4 unit property with 3.5% down. Again, this is only a primary home loan option but thought I would bring this up in case this topic was research by others.