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Old 01-30-2009, 09:33 AM
 
51 posts, read 122,833 times
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Hi,
We are looking into buying some investment property with a few partners. Does anyone know what the current down payment requirement is now? I have heard that you MUST have 20% or no loan, is this true?
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Old 01-30-2009, 09:54 AM
 
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For owner occupied there are still ways to put down as little as 3%. This is will generally result in higher interest rates, upfront charges and PMI. To avoid those things putting 20% is the norm for owner occupied. You may also be able to structure a 1st and 2nd mortgage to make up the difference of 10% down and 10% borrowed for the second. Depending on rates and amount borrowed this may be a good option. There are other threads on this. Use the search function.

For investment properties larger than 4 unit residential units , or general commercial property, there is a much thinner secondary market as FHA does not participate. Terms have always been at the lenders discretion, and rarely were low down payments greeted with favorable terms...
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Old 01-30-2009, 11:31 AM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,100,246 times
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Quote:
Originally Posted by chet everett View Post
For owner occupied there are still ways to put down as little as 3%. This is will generally result in higher interest rates, upfront charges and PMI. To avoid those things putting 20% is the norm for owner occupied. You may also be able to structure a 1st and 2nd mortgage to make up the difference of 10% down and 10% borrowed for the second. Depending on rates and amount borrowed this may be a good option. There are other threads on this. Use the search function.

For investment properties larger than 4 unit residential units , or general commercial property, there is a much thinner secondary market as FHA does not participate. Terms have always been at the lenders discretion, and rarely were low down payments greeted with favorable terms...
For a residential investment property that is 4 units or less 20% down is absolutely required. 25% down will get you a better rate.

FHA does participate in multifamily commercial properties. 223f loans for acquisition and refinance and 221D4 for construction and rehab. Max loan to value on a 223f is 85%, given the property debt services.
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Old 01-30-2009, 02:18 PM
 
51 posts, read 122,833 times
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We are looking into buying a single family home, not a duplex or apt unit.
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Old 01-30-2009, 03:12 PM
 
4,544 posts, read 11,553,746 times
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Quote:
Originally Posted by mantismom View Post
Hi,
We are looking into buying some investment property with a few partners. Does anyone know what the current down payment requirement is now? I have heard that you MUST have 20% or no loan, is this true?
Yep.
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