First Investment Property, Conventional Loan

[Vincent Russo]

Hello All,

I have a place I am about to make an offer on in Baltimore, MD. Over the last few months while shopping for a place, I was told I need to put 20% down since this would not be my primary residence. It is too close to my home to call it a vacation home, so I need to do a conventional investment property loan. Now that the rates are up over 7%, my loan guy is telling me I need to put 25% down, says it is a new rule.  My credit score is over 700 and debt to income is solid. Putting 25% is really squeezing my liquid cash to do anything else with the property after I own it. (It will be a MTR for traveling nurses, so I need to furnish it). What options do I not know about that I could be using here that will allow me to put as little as possible down on this property?

[Nathan Gesner]

Quote from @Vincent Russo:

I'm sorry I don't have any advice on how you can make this happen. I just want to ask: is an emotional decision or a wise business decision? If the market slows down and property values drop 10% in the next year, would you still be happy with the purchase?  If you have to put 25% down and pay 7% interest, does it still cashflow and make sense?

The market is changing. We don't know if prices will stabilize or stagnate or crash. For the first time in six years, I'm not seeing a lot of properties that make sense, but I do see a lot of new investors making emotional decisions, rushing to buy properties at inflated prices. 

Maybe it's right for you. I'm just suggesting you be careful about trying to force a deal.