Loan With Cheapest Down Payment for Non-Owner Occupied

[Colby Burt]

Hi,

I am having trouble finding the answer to my question of what is the option for a loan with the cheapest down payment on a property I wish to keep as a rental, that I personally will never live in? 

I see down payments of 15%. 20%. 25%. But then I read you can do 10% down with a certain Fannie Mae program even if I never intend to reside in the property. 

Any guidance would be much appreciated. 

[Trevor Alexander]

Hi Colby -- Fannie Mae and Freddie Mac (which are the ones who create the conventional loan guidelines) require 15% down for a SFR NOO purchase with PMI, and 25% for a 2-4 unit NOO purchase. So, the majority of lenders will follow this.

Lenders can also have their own portfolio of products not sold to Fannie Mae, therefore can create some of their own criteria. Academy Mortgage has a portfolio investment product for 10% down with no PMI.

Hope that helps and good luck on your investment!