All Forum Posts by: Eugene Chin

@Eugene Chin

The vast majority of non-owner occupied financing packages will require you putting down at least 20% for a down payment, with 25% being a fairly common expectation as well. If you are willing to live in the property for at least 1 year though, you would be able to qualify for owner occupancy financing which have much lower down payment requirements. For example, while the FHA loan you mentioned was intended for first time home buyers; it is actually available to all home buyers who plan on living in the home for at least 1 year. There are certain requirements though such as the new property needing to be at least 60 miles from your current primary residence. If your goal is to purchase a property with a low down payment in the immediate future, sacrificing your personal comfort for a 1 year might be a worthwhile trade off. You could rent out your current primary residency for 1 year in the mean time and move back after the terms of the financing have been met. There are other lenders and financing packages aside from FHA loans available for owner occupancy, those can typically be found in regional banks and local credit unions and will be something you may need to find in your region through referrals or personally visiting these institutions.

FHA loans will allow you to do this. You should also be targeting owner finance.

Hello Eugene,

So for investor loans for up to 4 unit properties most lenders require a 20% down. It usually is very hard to find do a deal without a 20% down minimum. Very very very rarely will there be anything under 20% down for an investment deal although I have seen a 15% down DSCR deal being marketed by another lender but I'm sure rates will be higher because of the perceived risk.

Also rates and terms usually depend on factors like your FICO, percentage downpayment, zipcode(high density or low density), if you pay more to buy down rate, etc so everyone's rate will be different depending on these factors