Banks That Would Accept 20% Down Payment for Duplex in Maryland

Mortgage Brokers & Lenders
6yFollow

Banks That Would Accept 20% Down Payment for Duplex in Maryland

LaRuan A.
Rental Property Investor · Washington, DC · Member since 2019 · 12 posts · 3 votes

Do you know of a bank, lender, or financial institution in Maryland that would allow for me to put a 20% down payment on a duplex, instead of 25%? I am looking to finance several duplexes in a small town in Maryland.

0Reply
12 views

Most Popular Reply

Ben Guttman
Specialist · Baltimore, MD · Member since 2017 · 418 posts · 126 votes
6y

@LaRuan A. Cole you could try @Scott Freitag either he can or can’t but he will steer you in the right direction. Works with investors all day and is very in touch with the local market.

2Reply
See this reply in the discussion

12 Replies

Jump to latestLatest
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    If you are looking at doing a conventional loan, I think the Fannie Mae guideline is 25% down on multi for investors.

    @Chris Mason is that right?

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    0Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    6y
    Originally posted by @Russell Brazil:

    If you are looking at doing a conventional loan, I think the Fannie Mae guideline is 25% down on multi for investors.

    @Chris Mason is that right?

     Yup, that's correct.

    My inbox is spammed with "portfolio" lenders looking for my brokered business, sometimes leading with 20% down 2-4 unit investment in giant bold capital letters. Then you call them with a scenario and the rate is something absurd that no investor in their right mind would take, and on top of that it's got a 3 year prepayment penalty, meaning you can't refinance it without penalty (f. ex if you improve it for another 5% equity, bringing you to 25% for Fannie) until 3 years pass, oh and they want 2 points to boot. I don't think you want that OP, but if you do go ahead and call a local mortgage broker, lead with "hey, just so you know, I expect horrible terms for what I'm asking for, and am not going to bite your head off..."

    1Reply
  • LaRuan A.
    OP
    Rental Property Investor · Washington, DC · Member since 2019 · 12 posts · 3 votes
    6y

    Thanks Russell, That sounds right. Most lenders I approach are asking for 25% down payment; whereas, I am looking to put down 20%.

    0Reply
  • LaRuan A.
    OP
    Rental Property Investor · Washington, DC · Member since 2019 · 12 posts · 3 votes
    6y

    Thanks for the additional expectation, Chris Mason. I will just accept the 25% down payment for the deal I have.

    0Reply
  • Daniel Kim
    Rental Property Investor · Garden Grove, CA · Member since 2012 · 100 posts · 69 votes
    6y

    I am no expert on lending but I just bought an investment property in Baltimore last month using a conventional loan and my lender quoted me "20% down Rate is 5.25%, 25% down Rate is 4.75%". I went with 25% down anyways for the lower rate but 20% seemed to have been an option (not sure if it was due to my credit or what though).

      0Reply
    • Ben Guttman
      Specialist · Baltimore, MD · Member since 2017 · 418 posts · 126 votes
      6y

      @LaRuan A. Cole you could try @Scott Freitag either he can or can’t but he will steer you in the right direction. Works with investors all day and is very in touch with the local market.

      2Reply
    • Tim Miller
      Rental Property Investor · Laurel, MD · Member since 2016 · 378 posts · 382 votes
      6y

      I would check with a small local bank. We have 2 multi family building and only put 20% down on both of them. 

      0Reply
    • Stephen Predmore
      Rental Property Investor · Baltimore, MD · Member since 2018 · 107 posts · 129 votes
      6y

      @LaRuan A. Cole. I second the @Scott Freitag recommendation. Very helpful portfolio lender.

      1Reply
    • LaRuan A.
      OP
      Rental Property Investor · Washington, DC · Member since 2019 · 12 posts · 3 votes
      6y

      Thanks Gentlemen,

      @Daniel Kim, is the investment property a multi-family residential property (i.e., duplex; triplex; quad) that you put 20% down payment?

      @Ben Guttman, I will reach out to Scott Freitag if my current 20% financing fails.

      @Tim Miller, Do you mind sharing your contact with the small local bank you used put 20% down?

      Thanks again,

      LaRuan Cole

      @Stephen Predmoreundefined

      @Tim Miller

      0Reply
    • Daniel Kim
      Rental Property Investor · Garden Grove, CA · Member since 2012 · 100 posts · 69 votes
      6y

      No sorry, I bought a rowhouse, not a multifamily.

      0Reply
    • Ned CareyPro Member
      Moderator
      Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
      6y

      @LaRuan A. something not mentioned here, is that if you want to hold the property in an LLC, you financing options will be limited.

      0Reply
    • Tim Miller
      Rental Property Investor · Laurel, MD · Member since 2016 · 378 posts · 382 votes
      6y

      @LaRuan A. Cole Our local bank is in western Maryland. The Baltimore area is not in their range.

      0Reply
    Join the conversationCreate a free account to reply, vote on answers and follow this thread.
    Log InJoin for Free