Investment Property/Downpayment

[Anonymous]

For an investment property, how much of a payment do you need for financing? Would you need more than 20%.

[Anonymous]

Generally today you need 25% down for loans less than $417K. More than $417K you need 35% down. However, a few banks will do 20% down for less than $417K. For over $417K you can do less than 35% down, but only if you do a commercial loan (higher interest rate, adjustable rate, balloon possible, shorter amortization).

A few properties that are bank owned by Fannie Mae or Freddie Mac have special financing that permit investor purchases with as little as 3.5% down, but these are hard to find.

[Anonymous]

Anonymous wrote:Generally today you need 25% down for loans less than $417K. More than $417K you need 35% down. However, a few banks will do 20% down for less than $417K. For over $417K you can do less than 35% down, but only if you do a commercial loan (higher interest rate, adjustable rate, balloon possible, shorter amortization).

A few properties that are bank owned by Fannie Mae or Freddie Mac have special financing that permit investor purchases with as little as 3.5% down, but these are hard to find.

I thought we are trying to get away from no-down-payment or low-down-payment financing deals that got us into financial crisis in the first place.

[Anonymous]

What PP mentioned is the Fannie Mae Homepath program- low downpayment requirements for buyers of Fannie Mae foreclosures. Not sure how many there are in this area.