Pressure to put 25% down

[Ashley Lynn]

Looking for some advice. We have been wanting to buy a second home to move into and rent out our current property which would cash flow $600 a month. A few months ago we took out a second mortgage of $25,000 since we were told we could put as little as 5% down. We’ve put in offers but a lot of condos either need to pass a survey by the lender or we need to put 25% down which would wipe out our second mortgage and most of our savings which I don’t feel comfortable doing. We are not in a rush to buy but we are getting pressure to put 25% down to get the deal (which aren’t even great deals in this market). Our goal is to eventually buy a third and rent out the second property as well so we also want to make sure the numbers make sense as an investment. We are also losing out to cash offers since our price point is low (under $150,000 in south Florida). Anyone else running into issues with putting a small percentage down?

[Wayne Brooks]

Those condos are apparently “non warrantable”.....they don’t qualify for conventional financing due to investor owned percentage of units, bad financials, etc.