Financing first rental

[Jasmine G.]

I am looking to purchase my first rental property. I currently own my primary residence where I am responsible for the mortgage. My husband on the other hand is not tied to the mortgage and has the ability to obtain a conventional l

loan as a first time homebuyer. However, we’d like to purchase the next property as a single-family or single-family townhome. I’m struggling to find ways to find low money down with average interest rates to purchase the rental home. When I speak to finance institutions, I am only offered non-conventional loans for investment properties which require high down payments and significantly higher interest rates. Right now the market isn’t that great but I could see us looking to purchase a multifamily duplex however, in the current market, I’m finding it difficult to be able to have one tenant cover the cost for that property to break even.

[Jaycee Greene]

Hi @Jasmine G.! I concur with Robin's comment about the DSCR loan, but it can be an intimidating process. I'm curious as to the "financial institutions" you've talking to, were they banks? credit unions? HMLs? Also, what type of "non-conventional loans" did they offer?