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Is it standard to require 35% down and 20 year variable interest rate for a family property you intend to rent out??

by hwestiii507 from Firth, Nebraska. Dec 10th 2020 Reply


Michele Bledsoe (MicheleBledsoe)
#106 ranked lender in Georgia - 23 contributions

We only require 20% down on a fixed rate mortgage for investment properties. If it's a condo, 25% down. You will get your price interest rate with 25% down. I'd be happy to answer any other questions you have. Email me Michele.Bledsoe@Goldwaterbank.com. I lend in all States except NY and ME. Michele

Dec 10th 2020
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,262 contributions

If you are talking about a 1-4 family unit, which includes single family homes, Duplexes, Tri-plexes and four-plexes, NO, that is not standard, and in my professional opinion, any lender that is recommending or requiring a variable rate on these types of loans in today's market should be avoided like the plague. Now, if the property contains more than four family units, such as a six-plex, Fannie and Freddie will not purchase these as they are considered commercial structures. It is possible that a commercial investor might want a variable rate, and a shorter term, but again, in my professional opinion, with rates on fixed rates loan products being as low as they are, I can't imagine a scenario where an investor would actually want a variable rate loan. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ At NEXA, we've got you covered. We are licensed in all states except MA and NY and we are pending approval in VA. ~ www.ApplyYes.com 480-889-9000.

Dec 10th 2020
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Dan Paladin (dpaladin)
#1 ranked lender in California - 713 contributions

That would not be the norm. Maybe that is required for you to income qualify? You need to ask your lender why 35% down.

Dec 11th 2020
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,344 contributions

NO, that is NOT standard. That sounds like a small bank or credit union making up their own program rules and their own guidelines. They can do that if they wish, but I would strongly suggest a traditional mortgage with a fixed rate, and for you to call someone else for a second opinion. I lend in MN Wi IA ND SD. Find me at JoeMetzler.com - NMLS 274132

Dec 14th 2020
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