Current Investment Mortgage Down Payments

[Nate Bartlett]

Hello, 

My wife and I are looking to close on our first STR deal. My mortgage broker is telling me that with the current market, we are likely going to be required to put down 25-30 percent. Our financials are good, credit scores good, and we are approved for a conventional owner occupied mortgage. We decided on holding off buying our personal property so that we can take advantage of this great deal we found.

Looking for opinions on whether or not we should shop around. I’ve been reading that 20% is standard for investments, but even saw some lenders will do 15%. We are inexperienced, so I’m sure that 15 might be out of range, but 25-30% will make this deal unobtainable for us. 

[Steven Foster Wilson]

Quote from @Nate Bartlett:

Hello, 

My wife and I are looking to close on our first STR deal. My mortgage broker is telling me that with the current market, we are likely going to be required to put down 25-30 percent. Our financials are good, credit scores good, and we are approved for a conventional owner occupied mortgage. We decided on holding off buying our personal property so that we can take advantage of this great deal we found.

Looking for opinions on whether or not we should shop around. I’ve been reading that 20% is standard for investments, but even saw some lenders will do 15%. We are inexperienced, so I’m sure that 15 might be out of range, but 25-30% will make this deal unobtainable for us. 

 Hi Nate, 

With my experience here in Columbus/Cincinnati/cleaveland area it has been a pretty steady 15-20% range. I personally will call 5 or 10 lenders and compare rates. Sometimes they are even willing to be competitive with their rates. But in 99% of cases @Chris Wharton is the best choice in my experience.