First time buyer

[Julie George]

Hello all,

I am looking to purchase my first home in Chicago to manage as non-owner occupied rental property. I am planning to use a conventional financing method. I understand that financing requirements for rental property is more conservative. Can someone point me to a good recent source or article that provides the financing guidelines for rental property in Chicago? i.e such as down payment requirements, whether gift money is allowed, hedge reserve funds... 

Thank you!

[Ken Reed]

Your best resource for a question like this is the financial institution you plan to use. For most big banks you should expect a 20-25% down payment. You can also look into asset based lenders such as Lima one. Their terms are readily available on their website.

[Alex Fraher]

Hi Julie,

If you want conventional financing through a major lending institution you'll likely need 20% down payment. I don't think there are restrictions on gift money but it varies lender to lender. Let me know if you'd like an introduction to some of the mortgage people I've used in the past. I'm also happy to send you some potential properties if you'd like? Either way best of luck and happy house hunting!

-Alex