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Is it possible to get an loan with 10% down to purchase a rental home?

Profile picture for mrg11
Contributions: 2
I have good credit and 10% down to purchase an investment home.  I also have good reserves.  I was told that the only way to buy a rental home is with 25% down.  Has anyone heard different?
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August 25 - Brea

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Profile picture for Courtesy Mortgage
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Since January 2009

25% is ideal.   20% is possible, but costs/rates are higher.  

Less than 20% is impossible for California because PMI is not availale.  
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August 25
Profile picture for Veltri Homes
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Why don't you buy a "second home" and rent that?  You would qualify for better programs and better rates.

I've done a few of these for my investment clients and it's worked out "peachy".  I'm local to Brea if you need any help with locating and securing something that would work.

Good luck!!!
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August 25
Profile picture for ColoradoLender
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Great advice Tony.  Do you bring your clients brand new striped jumpsuits at closing as a gift after assisting them with mortgage fraud?
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August 25
Profile picture for Gregorio Denny
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Tony, that is such a ringing endorsement of your professionalism. First thing you suggest is to lie and break tha law .... you must be one heck of an agent!

Everyone ... hide your wallets!

You say:
"I've done a few of these for my investment clients and it's worked out "peachy"."
Perfect, then it will be easy for the DRE to track it and appropriately action your license that was apparently obtained  from a Happy Meal. 
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August 25
Profile picture for Courtesy Mortgage
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Color is close to "peachy" ?

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August 25
Profile picture for SDMortgagefinder.com
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The norm varies between 20% and 25% down as some have noted.  Some lenders place an overlay of their own requirements that pertain to their investors to whom they sell the loans to.

Good Luck from a previous OC resident.
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August 25
Profile picture for City First Mortgage
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Wow Tony. That's all I gotta say.
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August 25
Profile picture for CA UMB
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Don't do as Tony suggests. You don't want the FBI to come knocking on your door investigating you for Mortgage Fraud. It won't be a moment to cherish. ..... Best wishes, Rudi
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August 25
Profile picture for California Mortgage
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Justin and G, you guys are too funny.  Thanks for the laugh today!  And isn't that jumpsuit color called "california penal code peach"? 

In all seriousness, I echo everyones sound advice on this post but Tony's.
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August 25
Profile picture for City First Mortgage
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Too bad agents can't be rated like us. Tony gets a 1/5 for promoting mortgage fraud.
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August 25
Profile picture for NJShoreMortgage
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mrg11,
Please do not listen to those who would have you commit mortgage fraud. Unless you want that second home in Sing Sing.
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August 25
Profile picture for mrg11
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Thanks for all your replies!  Definitely don't want a second home in Sing Sing lol.  I think I'll wait awhile and come up with 20% down..
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August 25
 

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Discussion Is it possible to get an loan with 10% down to purchase a rental home?
  • Last reply by mrg11
  • August 25
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