Lowest interest rate for a buy and hold

[Tony Fulco]

Hello - I am pretty new to the site but have really learned a lot.  I have flipped a few houses but am now looking for a one to four unit investment for cash flow.  Any suggestions on where to solicit the lowest possible interest rate for a loan?  House-crashing is not an ideal option for me.  I am in Maryland and would love to borrow at less than 10% down.  Thoughts?  Thanks.  

[Mindy Jensen]

Hi @Tony Fulco. If this is a straight investment, you're not living in it at all, you're looking at a 25% down payment. You might be able to get in at 20%, depending on your employment status and credit score, but I think even 20% is going to be tough.

Could you live in one of the units for a year? That satisfies the FHA requirements and allows you in at the lowest interest rate with a down payment of 3.5% on up to 4 units.

A word of warning, if you do not plan to live in one of the units, do not say you plan to live there - that is mortgage fraud and is a felony.