Working on our first deal

[Frank Del Corso]

My wife and I have been enjoying the podcasts and working together on buying our first rental property.  We found a lender that we've pre-qualified with and they have told us we'll need to put down 25%, which is our problem.  We have good income but we don't have enough money available for a 25% down payment + closing + renovations so what do we do?  I'm thinking we should look for another lender but what we don't know is if this is standard for a multi-family traditional mortgage loan or not.  Does anyone have experience with loans for multi-families in PA?

Thanks!

Frank & Jen 

[Lauren Juarez]

Ask your lender about the Fannie Mae HomeStyle loan. This loan lets you bundle your rehab costs into the mortgage. I believe this loan can be used for owner occupied 1-4 units, and it may require less than 25% down for a duplex. I think the down payment goes up for 3-4 units properties. But it's definitely something to look into.

Have you also considered the FHA loan?