5% down on investment property?

[Dylan H.]

BP - help me out here, as this is really throwing me for a loop —Everything I’ve read and been told says you need 20-25% down on investment properties ie: non-owner-occupied 

I’ve seen a few BPers in the deal diaries stating they’d purchased their investment properties with a 5% down loan —Are those folks openly committing mortgage fraud or are they just “well-connected”?

One member said their lender offered a first time home buyer credit — I didn't think FTHB credits would be valid on anything other than primary residence/owner-occupied…

Thoughts? 

[Cal Martin]

If I had to guess it could be an aggressive DSCR loan, or

they had owner carry part of the deal, or

they could've been an agent and elected to have their commission go towards part of their DP

Regardless, definitely weird situation.