Low % Down on Rental Property

[Timir Shah]

Hello,

Traditionally I have always done 20% down for a rental property and tried to see if I can find anything on obtaining a loan that requires less than 20% down on a investment property. I have great credit, own my personal home already and have no other debt. 

Has anyone had luck with obtaining a loan on a rental property with less than 20% down? If so, how did you go about it and what has your experience been?

[John Warren]

@Timir Shah while you can definitely put down less than 20%, there is normally a catch. I have a hard money lender that will do as low as 10% down on our value-add multifamily deals. We normally end up putting 20% down anyways, but we did just put down 15% on the last one. Lenders consider our down payments to be the buffer that protects them if things go bad, so less than 20% is pretty skinny for a lender if things go south.