Profile picture for psheperd

What is the minimum I can put down on a loan for a 4-unit investment property (not owner occupied)?

One lender is telling me there is no way I can put down less than 25%. I am willing to accept mortgage insurance. My credit score is 780.
Thanks.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 24 2009 - North Dorchester
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (10)

Many lenders have guidelines on negative net rents too.  They may limit the loan amount so that the 4plex has net zero or posititive cash flow.

In that case a loan while rates are low will be significantly lower down payment then when rates are higher.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 05 2009
Conforming, Non Owner Occupied, 2-4 unit property:  25% down.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 05 2009
There is no mortgage insurance for investment properties.  Some lenders will go up to 80% but the points they require and the rate make it unreasonable or impossible.  Even at 75% the rates and fees are going to be horrendous.  Right now is definitely not a good time to buy an investment property without a huge down payment and it being a multi-unit property makes it even worse.  Good luck.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 02 2009
Profile picture for shapiroamg
Expect to pay points too.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 28 2009
Profile picture for CoryUre
Most of the lenders I work with are requiring 25% down right now on a non-owner occupied 4-unit property.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 28 2009
In today's market not less than 25% down.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 26 2009
There is no mortgage insurance available for investment properties.  The larger down is the only option.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 26 2009
For 3- and 4-Unit investment (rental) properties, you must put at least 25% down.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 26 2009
Shepard,

25% is the minimum down payment on a 3-4 unit investment property.
IMHO you would be in a better position purchasing two 2 units instead of a 4-plex, Better yet would be a 5+ multi-family. .. Good luck, Rudi
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 24 2009
In todays market, the 30% standard applies.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 24 2009
 
Related Questions
If a lender uses my salary to consider me for a loan, what happens if I get fired or I quit?
Profile picture for FishRoy
Latest answer by FishRoy
March 10 2009 | 10 answers
  • Asked by psheperd
  • In Lenders
  • March 05 2009
What is the minimum I can put down on a loan for a 4-unit investment property (not owner occupied)?
Profile picture for Stephen Ching
Latest answer by Stephen Ching
March 05 2009 | 10 answers
  • Asked by psheperd
  • In Lenders
  • February 24 2009
Refinancing existing home for down payment on new home.
Profile picture for Clearpoint
Latest answer by Clearpoint
February 27 2009 | 5 answers
  • Asked by bvt14
  • In Lenders
  • February 27 2009
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 663 E 7th St UNIT 1, South Boston, MA Home For Sale
    663 E 7th St UNIT 1, South Boston, MA 02127

     For Sale: $799,000

    • Beds: 3
    • Sqft: 1722
    • Baths: 3.0
    • Lot: 1742
  2. 16 Lyon St, Dorchester, MA Home For Sale
    16 Lyon St, Dorchester, MA 02122

     For Sale: $499,000

    • Beds: 6
    • Sqft: 2820
    • Baths: 3.0
    • Lot: 3049
  3. 165 I St UNIT 3, South Boston, MA Home For Sale
    165 I St UNIT 3, South Boston, MA 02127

     For Sale: $299,000

    • Beds: 1
    • Sqft: 500
    • Baths: 1.0
    • Lot: 486