Potential Lending Options

[Deonte Hill]

Hello Everyone,

I appreciate you for taking time to read this. I Just joined bigger pockets pro as im ready to jump Into the game and make some moves this year. I am looking to my first property this year. I have funds totaling around 20k for a down payment (100k home), however for my planned strategy I’d like to target homes at max 200k which should require a 40k down payment. Are there lenders who would accept less than a 20% DP or is this an absolute must? 

Thank you 

[Daniel Tanasa]

Hey Deonte,

As @Dave Skow was saying you need at least 15% down if you plan to get a conventional loan for an investment property. Anither option could be to get a hard money loan for a property that needs work, increase its value through renovation and then refinance to a conventional loan. A hard money loan can lend you up to 100% of purchase and rehab money as long as that is lower than 75% of the ARV (After Repair Value) of the property. I will be happy to put you in contact with some lenders that I use for my hard money loans if this is something you're interested in.

Good luck with your investing.