Financing options for my first property

[Jason R.]

I currently own my current home (mortgaged) and am preparing to buy my first rental property. My question relates to the financing of the rental property.

Since the rental property I would buy is a 2nd home, all the banks and brokers I have talked to said I would need 25% down to avoid PMI. I have a friend who referred me to a local bank that he said he has used for investment properties and he only puts 20% down, but finances through his LLC. I contacted the same loan officer and they told me they have to have 25% down whether I finance it or my LLC does.

Are there lender's that will allow you to do 20% down on an investment property without PMI? Am I just asking the loan officers the wrong questions? I don't think the 25% down is related to my credit or DTI, I hadn't gotten that far with anyone yet.