25% down for multi families. Anyone finding better loans?

Question

Lenders I’ve spoke to are requiring 25% down for any multi family investment properties. Just a couple months ago they would do 20% and one would even do 15%. Wondering if anyone has found a lender that will do less than 25% lately?

Warren Golston · Answer

I'm in the Hampton Roads area of Virginia (Norfolk/VA Beach/Portsmouth). My credit score is 823, no debt (outside of my mortgage), and I'm still only getting around 4-5% interest rates requiring 25% down. I hear of people getting 3.5%-4% no buydown and 20% downpayments and I'm like where are you getting those rates?!?

Bjorn Ahlblad · Answer

@Noah P Bonds and they will want reserves, track record, net worth equal to loan amount and your first born!

Noah P Bonds · Answer

@Diana T. Hurst lending was doing 15% but not at the moment. Rates with them were 4% range depending on the situation.

Austin Mudd · Answer

Times have changed my friend. Banks have adopted more conservative underwriting standards. You might get better loan terms at smaller lending institutions.

Kenneth Mooney · Answer

@Noah P Bonds it’s definitely not that in my market. Not sure what it is exactly though.ours is much lower I believe.

Brandon Beatty · Answer

@Noah P Bonds I’ve seen some banks still going to 80% if the property is in major MSA. Many variables here, but I think it’s out there if you have the right opportunity

Noah P Bonds · Answer

@Kenneth Mooney

Boise & Caldwell in Idaho. Most options I’m looking at are 2-4 units.

Diana T. · Answer

@Noah P Bonds

This has been the going rate for years as far as I know. Who was doing 15%? Was is even worth it, I’m assuming the interest rate was much higher? It sucks!

John Blanton · Answer

For most markets hearing 75% LTV and 1.3 DSCR, top tier markets are still getting 80% LTV and 1.25 DSCR for agency debt

Depending on size and location seeing 80% LTV from some local banks, but that will depend on the particular project and potential risk

Kenneth Mooney · Answer

What city and how many units are you looking at?

25% down for multi families. Anyone finding better loans?

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