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Can I do a conventional loan with less than 10% down? I'm looking to purchase a second property (non-owner occupied)

by cindy_hartman289 from Alpine, New Jersey. Jan 22nd 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

No.. For primary residence, you can do 5% down (3% if your a first time home buyer), but for investment properties, you have to put 20% down, but ideally, 25% (financing terms favor larger down payments). In addition to the down payment, you also have to have 6 months finance reserves which is an amount in a bank account equal to 6 months investment property mortgage payments. There might be some "Portfolio" type loan products that allow for lower down payments, but I highly doubt it.. and even if they did, the interest rate, terms and fees would be much higher making it really not worth doing. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Jan 22nd 2016
Edward Fallon (edfallon)
#90 ranked lender in Pennsylvania - 143 contributions

For a 1-unit investment property, you should be able to find a program that will allow 15% downpayment. For a second home, it could be as little as 10% down.

Jan 25th 2016
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