Low down payment (5% to 10% down) investor loan options in Tampa Florida?

[Anirudh Reddy]

Hello,

Me and my partners are interested in buying new construction townhomes near Tampa, Florida that are going in the mid 300k price range.

We all have our homes as our primary residence and we don't intend to change that. So, we can't use FHA loans with low down payment options.

Are there any loan options out there that would offer low down payment options (5 to 10% down) for an investment property?

Thanks,

Ani

[Devin Peterson]

Quote from @Anirudh Reddy:

Hello,

Me and my partners are interested in buying new construction townhomes near Tampa, Florida that are going in the mid 300k price range.

We all have our homes as our primary residence and we don't intend to change that. So, we can't use FHA loans with low down payment options.

Are there any loan options out there that would offer low down payment options (5 to 10% down) for an investment property?

Thanks,

Ani

 Anirudh, If you are looking to purchase any sort of investment property you will need to plan for 20% There are lenders out there that can 15% but its a facade, meaning that the numbers most likely wont work.

If you plan to buy and rehab the property you could potentially get 90% LTV for the purchase price but you must have experience in Hard Money / Bridge loans prior, you would need experience of 3-6 completed bridge loans/flips in the 36 months.. every lender is slightly different in respect to their program guidelines.

For DSCR loans you will need 20% down and roughly 2-3 months of reserves. I like to be conservative in my cost and fess estimates and say plan for 3-4% of the sales price for closing costs. It may sound high, but you must not forget there are a lot of nuances, unknowns, and moving targets that impossible to predict ahead of time that's why its always better to round down than up! Happy to connect for more questions.

PS - Im local to you in St. Pete - If you need any other recommendations or referrals I am happy to help! Good luck!