Updated almost 3 years ago on . Most recent reply
Do you recommend down-payment loans
I seen a couple of properties in new york tri-state area that I'm interested in; however, I have a lot less than 20% to put down and don't plan on living in the property. Does it make sense to get a down-payment loan from the state to add to the cash I have already to possibly bring my down-payment up to 20%?
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Down payment loans are usually for first time home buyers, or people who are purchasing their primary residence. In addition there are requirements for these loans, as well as targeted areas you would have to stay within, etc.
My suggestion in this situation would be to buy a property that you plan on living in- takes a lot less cash up front, and then rent it in a few years. You can then buy your next property as a primary residence- keeping that down payment low as well.
Something to consider- check the restrictions on the down payment loan if you plan on renting at a later date.