Investor loan down payment

[Geronimo T.]

I'm calling different banks asking what downpayment for investor loan is. Lowest I got is 15% for single door. If I get duplex, triplex or fourplex, then it's 25%. I'm in Texas. Is this standard? Is 15% good? Has anyone heard of 15% or lower for multiple "doors"? Also I mentioned I would use equity line of credit in my other home for downpayment. One said I can't use HELOC for a downpayment. I thought that was part of BRRRR?? Any thoughts bigger pockets ?? Thank you.

[Craig Bowen]

Hey Geronimo....20% is pretty standard for banks.  Sometimes local banks or credit unions (portfolio loans) will be interested in increasing their investor presence and be willing to make deals, but I've done quite a bit of looking/applying lately for a deal I'm doing, and haven't seen less than 20% down.   

As far as the HELOC question, the basic rule when borrowing from an institution is that no part of the down payment can be borrowed money. When you apply they will ask for your bank statements and you will have to explain any large, non-wage, deposits. If they involve borrowed money you won't be able to use it as any part of the downpayment. Basically, conventional institutions want you to personally have skin in the game. This is why private money is such an attractive option in investing!

Don't know about multiple doors but the above will be true anytime you are borrowing from a regulated institution.  Fannie and Freddie are great options if you have the luxury of time....and some patience to go with it!!

Good luck!!