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Answers (5)
- victor edelman, "SwiftNSure"
- Contributions:492
Yes, You can get it financed for as little as 20% down, but most are asking for 25% or 30 % down. One of the best deals in the midwest is Capital Federal they will give you a fixed rate and a 15 or 20 year loan. Bank of America will also work with you on the rate and terms. If you use the equity of your paid off homes it is possible to get a 100% loan, but will tie in the other home
- Eve Brownstein, "Eve at rentUSAnow"
- Contributions:2
Yes. However, you may have more leverage with your bank if you use one of your cash properties as collateral. What you're really doing is asking for a business loan. You should go to a business bank located in the community where you intend to buy the house. Banks who deal with investors are usually more flexible regarding what type of loan they can give you. They also understand their local market better than some of the national banks and can be more flexible regarding how much you have to put down, based on trends in that market. Make the loan officer your friend and ask him or her what they can do for you. Be sure to explain your investment strategy (you should have one). Rental income counts, but so does your personal financial statement and even if you are not getting income on the two free and clear houses, they should be counted in your financial statement as assets, which can boost your financial worthiness. The bank will ask you for a financial statement.
Eve Brownstein
rentUSAnow.com
Eve Brownstein
rentUSAnow.com
- Call The Sisters, "Call The Sisters"
- Contributions:372
If you do not have debt and have a stable income there should be no reason why you can't purchase a rental property with 20% down.
If you purchased a multi family investment property and occupied one unit you could finance as owner occupied. Usually you can finance a property like that under the FHA guidelines. Low downpayment and low interest rate.
If you purchased a multi family investment property and occupied one unit you could finance as owner occupied. Usually you can finance a property like that under the FHA guidelines. Low downpayment and low interest rate.
- 12461Z
- Contributions:3
I would be able to supply a down payment of $20,000, I just don't want to use all my cash. I have 0 debt and income of around 100,000 a year. No income on the homes. I do have several other rental properties in CA and UT that I do have income off of. I guess what I want to know is it possible to get financing on a rental property these days with 20% down?
- Kevin Olson, Jessica Laude, "Higher Living Team"
- Contributions:1954
Do you collect rent on the other two homes for income, and what is your current income? These questions along with your current debt are going to factor in heavily in addition to your credit. Financing the down payment can be done, but this also depends on the financing you are planning on using. While sometimes a situation like this may look relatively simple to pull off, a lender is going to have to go through your financial situation with you to ensure you have some good options. Best of luck!
Down Payment required to buy an Investment Property
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