10% Down Loans for Rental Properties

[Matt Tallent]

I am looking to find a loan that I could put 10% down on for a rental property. For personal homes I know you can do as low as 3.5% with FHA but when it comes to rentals I've heard 20% to sometimes 25%. I found a lender who can do 15% down for rental properties but would love to get a 10% down loan. Any advice is appreciated thanks!

[Doug Wright]

I have closed many loans with local banks that have had 10% down payment on total loan (purchase price + rehab costs). For example 70000 property purchase, 10000 rehab budget, 8000 down payment, 72000 loan for 5.25%. Only downfall is 15 year amortization for buy and hold, or 1 year no payment on fix and flip loan. Sell within a year or refinance by paying off 1 year interest.  Closings costs on a loan average about $1500.  Have to love small town banks that are investor friendly.