Investor · Ripon, CA · Member since 2017 · 23 posts · 5 votes
Hello all, and thank you ahead of time for reading and hopefully helping me figure this out.
I'm investing in a college town in Illinois while we live in another state (California). We found a quadplex that we'd be renting out all 4 units. I've been going around to the different mortgage brokers and I'm getting numbers that just don't make sense to me. With a 740 credit rating, I'm quoted a minimum requirement of 25% down for 5+% interest for a 30 year note. What gives? What happened to 4% interest and 20% down? I'm told that the minimum is now 25% for investment properties. Can someone shine some more light on this? I asked the brokers that quoted us these numbers. Their responses were all some variation of "this is how it is now." Pressed to explain in more detail, they demure away from further explaining.
That's weird. The last time I bought a 4-plex with 20% down with a 3.75% interest rate was December of 2016 which isn't that long ago. And at that time my credit was lower than 740. I would ask them when this supposed change occurred.
Visit smaller local credit unions in that market. However being quoted higher terms for out of state is not uncommon. I'm looking to purchase in Louisville and i've been quoted 30% just because of the fact that i'm buying OOS.
@Clint LeClair for Conventional financing, it has always been 25% down for a 2-4 unit investment property. A 1-unit you can do as little as 15% down. If you ever found less than 25% down, that's not for Conventional financing.
@Clint LeClair, it is a 4unit building, all residential units yes? No commercial/mixed-use. There are options for less than 25% down on investment 4units, just need to find the right lender. Purchase price?