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Updated almost 4 years ago on . Most recent reply
Is 20% down needed for non-homestead duplex?
Hello everyone!
First time poster here! My husband and I live in MN, and would love to buy a duplex as an investment property. We are currently homesteading a single family home, which we have been renovating and not quite ready to sell. Do we NEED a 20% down payment since it will be an investment property? Or can we do a conventional loan with a lower down payment? Thanks in advance for the help!
Most Popular Reply
Originally posted by @Derek Meyer:
@Katie Esmay I believe you need a 25% for a non-owner-occupied multifamily home with Freddie/Fannie loans. At least that is what our broker told us.
You may be able to find a lender outside those loan programs but it may be at a higher rate. Let me know what you find.
Ok, I was kind of thinking that would be the case. Do you have an opinion or knowledge in using a Home Equity Line of Credit on a homestead to cover the down-payment of an investment property?