Conventional Loan Down Payment

[Nicky Gonzalez]

Hello! Newbie here just trying to get some advice on my first conventional loan to purchase and rehab a home. Currently living in California, looking to purchase a property in Pennsylvania as an investment. The lender I have worked with before sent me a pre approval letter but the down payment is 25%. Seems like a lot, I have excellent credit, low debt and good amount of savings. I can afford the down payment and still have plenty to do the rehab, I simply would like to know if this percentage rate is excessive or reasonable due to the property being an investment and not primary residence. Thanks in advance!

[Perry Farella]

Just to add some clarity here, the down payment is based on the number of apartments in a property. As an Investor you can buy a Single family home with 15% down and even add in rehab dollars if you wish. That has not changed with Covid. Two conventional loans, Fannie Mae HomeStyle or Freddie Mac Choice Renovation will allow an Investor to buy with as little as 15% down on a Single family. Once you go to 2 or 3 or 4 apartments, then as an Investor , down payment grows to 25%.
The loan is to you personally, never to an LLC or corporation and based on personal credit score/history etc. My blog has example and happy to answer questions.