Down Payment Percentages

[Brad T.]

Hello Everyone,

I am currently searching for my 5th rental house and the bank I have been using states that I will need to put 25% down instead of 20% that I put down on the first 4. Is this something that is standard or are there banks that will take 20% on houses 5 and up?

Thanks!

[Gerald Harris]

I recently got an email for a fellow local investor here in North Carolina. He has 26 rentals and is looking to acquire more. But the issue is the bank is asking for a 25% down payment. He was looking to put less down. I told him the alternative is seller financing. There are sellers out there who will take 10% down, even 5%. Also, you can use this time of year to your advantage. There are thousands of motivated seller out there who can't sell because of Winter time. Many of these seller will do seller financing. Good Luck to you!