Buying out of state with 5% down

[Drew Campbell]

Is it possible to buy properties out of state with 5% down? I keep on hearing people say that you're typically going to want 20-25% down for an investment property but is it still possible to do 5%? Would a piggy back mortgage be worth it? I won't be able to invest for another 5-7 years since my wife and I are working on paying off debt and saving up for a down payment on our own home here in Florida, but real estate really interests me so I am trying to learn as much as I can so that when we do decide to dive into it, hopefully there will be several things that I have a decent base in.

[Drew Campbell]

Quote from @Kristen L Garner:

Hi Drew, If you were purchasing it as owner occupied you could put down 3.5% (FHA) or 5% (conventional) - that is good news for the house you are buying for yourself and your wife! But generally speaking, investment properties require a minimum of 15-20% down and sometimes 25% for first time investors or tricky/unique scenarios.

There are some ways to get creative with down payments: seller financing, using an investment loan that allows "gifted funds", etc.

Best of luck! 

Thanks for the input! Very glad that we only need the 3.5-5% for our personal home. With the way prices and interest rates are going in our area it feels like a never ending game of catch up sometimes so this will really help us get our foot in the door. Good to know for the 15-20% for future planning too!