Do any lenders allow less than 25% down on conventional loans?

Question

My lender requires 25% on 1-4 family conventional, I've heard people say in the past their banks require 10% etc.  Please help me find lenders that require less down.  My credit is over 800.  Thank you!

Paige Hutchinson · Answer

Well I feel like it all depends on what you buy it for and the income it’s producing.

Carlos Ptriawan · Answer

Despite the regulation. It only makes sense to put at least 30% downpayment for any rental property. Even with 25% investor is taking too much risk. The problem with bigger pocket is they keep promoting 100% loan or minimum loan for any investments, which is extremely risky.

Paige Hutchinson · Answer

Thank y’all very much for confirming this information, yes I am referring to rental properties. I am thinking about renting my house out since we have no loan and get a duplex and rent one side so we can take advantage of an fha loan. 😊 I guess being a real estate broker I wanted to make sure I wasn’t missing some super investor loan! I’m not Cardone who only has to put 3% down like he said I guess. Lol

Paige Hutchinson · Answer

Yes, I’m finding it must be the same now for conventional loans. Thank you for confirming. We trying to buy a tri-plex and 2 duplexes, it’s a lot of cash down going that route. I may need to see you if our bank can do anything in house??

Mike Berube · Answer

I've been shopping around this past week, 25% down is the standard for multi family invesment properties. 20% for single family investment properties....but it gets better, you also need to show you have 6 months of reserves after the down payment and closing costs.

Jason Wray · Answer

Paige,

If it is for a Primary residence you can put less down 5-10% but if your buying a investment property it is 25% down for 2-4 Unit so for Duplex or 3-4 family investment you will need 25% down.

David M. · Answer

@Paige Hutchinson

That's a relatively new Fannie Mae requirement about upping the down payment requirement on multi-families.  FHA loans get around that, unless I have that backwards...  But, a 4 family is 25%, a 2 and 3 are not..

First, do I understand correctly that these are investment properties?  NOT owner-occupied?  Then, of course FHA won't work.  Usually non-owner occupied conventionals are min 20%.  There are some lenders that I think do 15% or 10%, but you are basically paying up front huge amounts of points to cover the difference.  Basically, the cost is baked into the loan.

Good luck.