Buy and Hold Interest Rates

[Chase Swanson]

I am looking to get a loan from standard lender ie (bank, credit union, etc) for my first property. I am planning on trying to keep my down payment on four plex as small as possible while still allowing for cash flow 15-20%.

I just sold my house and rent now have two small car payments and my wife and I have above 800 credit scores. When I got qualified I was surprised to see that the rate I was being quoted was 7+.xxx. When I questioned my lender it was said that since it was not 25% down so we had a higher rate.

Is this something a lot of people run into, is this something that is normal? I was expecting something above the prime rate but not almost double.

[Wyatt Franta]

7% + APR? That seems pretty high.

I've got a broker I can connect you with in San Diego to compare rates with if you'd like his information.