Specialist · Boulder, CO · Member since 2016 · 14 posts · 0 votes
Hello to all bigger Pockets members,
For the past year I have been listening to podcasts, read books on how to get your first deal in RE.
We (my husband and I) decided to jump in and put a offer on a three family units building in Essex county, in New Jersey, last Saturday.
Our overall strategy is buy-and-hold for a while and repeat again !
The property had 3 units, offer at 140K rented with a gross income of 35 K yearly.
I am looking at different local bank and online bank, I went with Quicken Loan with their closing fees are really, really high and we do have to put down 25 % for a conventional loan.
Do you know an online bank or local bank that can do less that 25 % down in NY or NJ ?
Investor · Union, NJ · Member since 2011 · 838 posts · 295 votes
9y
Hi Emilie,
If you have good credit and your income ratios are desirable and the property financials make sense you should be able to find a lender that will do 20% on a multi family.
There is no guideline that I am aware of for your first multi property requiring 25% down.
Investor · Clifton, NJ · Member since 2017 · 53 posts · 54 votes
9y
Congrats on taking the leap Emilie! I'm far from the authority on just about any topic here, but it is my understanding that finding a loan on a multi family property that you will not be occupying without putting 25% down isn't common. I may have heard about putting 20% down, but every bank varies. I don't know if you're going to get a bank to give you a high leverage loan with no previous relationship.
Investor · Union, NJ · Member since 2011 · 838 posts · 295 votes
9y
Hi Emilie,
If you have good credit and your income ratios are desirable and the property financials make sense you should be able to find a lender that will do 20% on a multi family.
There is no guideline that I am aware of for your first multi property requiring 25% down.
Specialist · Boulder, CO · Member since 2016 · 14 posts · 0 votes
9y
Thank you for all your comments, we received the contract signed by both parties 3 hours ago.
We do have an attorney review going on right now and should be done within a day or two.
Rental Property Investor · Ithaca, NY · Member since 2014 · 180 posts · 80 votes
9y
@Emilie Ponsin Our first multi-fam 2 years ago, we got with 20% down. After that we were told that 25% down was the new minimum for a multifam investment property and we were able to get lower conventional loans with 25% down for properties 2-4. Financing properties 5 & 6 required more work to find and acquire (and those banks wanted 65-70%LTV)
Investor · Clifton, NJ · Member since 2017 · 53 posts · 54 votes
9y
I also use State Farm for all my vehicles and two properties. I have access to NJM and MetLife through my job and neither could touch my state farm rates. Also asking my agent about HELOCS through them.
If you have good credit and your income ratios are desirable and the property financials make sense you should be able to find a lender that will do 20% on a multi family.
There is no guideline that I am aware of for your first multi property requiring 25% down.