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Purchasing an investment property in Tucson,AZ with less than 20% down.

How are you doing? I was wondering if it would be possible to purchase an investment property in Tucson, AZ with less than 20% down? I have the 20% down payment in the bank and investments, but I would rather put less money down to comfortably make improvements to the property on my own dime. I would be using the property as my own primary residence after June 2013 when I will be  released from active duty military, but for the time being I would like to use it as a rental property.

The property details:
-80,000.00 Purchase price.
-Purchasing from my Grandfather.
-Needs about 10-12,000.00 in improvements.

I really am looking forward to suggestions and some valuable insightful information.

Respectfully,
George.
  • August 24 2012 - Tucson
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Answers (6)

Best Answer

You may qualify for 10% down. You're going to have to get into more detail with a lender though in order to determine if you're a candidate for that type of loan. I recommend speaking with a mortgage broker rather than a bank for this. 
  • August 24 2012
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George,

Yes, this is possible and I would be more than happy to help if you have not already been assisted.  Every situation and client is different and should be treated so.  There are quite a few loan programs out there now that you might qualify for.  More often than not, it depends upon the home you are buying. 
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Regards,
Michael Shiner
  • February 25 2013
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I am an investor and personally know of many other investors who have purchased a home with less than 20% down. It all depends on what you are qualified for.
  • September 02 2012
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If you can find a Fannie Mae property that has been on the market for more than the first look initiative period, you could use homepath non owner occuped financing on it I believe, with 10% down.  Double check with a lender on that though.
  • August 24 2012
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Hi George, This is really more of a lender question & I can suggest a couple in town who to work with. However, with all the investors I work with 20% down is the minim on an investment property & most go with 25% to get a better rate, it will be a investor rate as it is, higher than it this was your primary residence. My best advice is to speak with several lenders & see what they can do for you. Best of luck. Spirit
  • August 24 2012
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Thank you for your quick response. Do you have any suggestions for a good brokerage firm, and what other details should I expect to relinquish to the lender?

Respectfully,
George
  • August 24 2012
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