Standard guidelines for “investment” are a minimum of 20% down.
There is a higher cost than if you put 25% down.
If you put 40% down you get the best pricing.
Loan limits are based on county and property type.
From 1 to 4 units.
You will probaly need at least 6 months of “reserve assets” of property expenses including property taxes & insurance, which can include vested interest in most retirement accounts figured at 70%. Doesn’t have to be cash, just semi-liquid net worth.
Houses, duplex, triplex and 4-plex are easier to finance than condos.
I HIGHLY recommend against buying a condo as an investment.
Without 25% down, condo loans have a pricing hit even if it is owner occupied. Many condos cannot be financed at all and prices will plummet to a reasonable cash pricing level.
By buying down the rate, loans are available for investment properties at the same rates as primary residence loans.
Currently rates are as low as 4.25% 30 YR fixed, but 4.375%-4.50% is a reasonable choice at the moment. IMO, It is WELL worth buying the rate down if you plan on keeping the property long term.
You may need to qualify without using any rental income and credit score is a factor in pricing the loan.
There are many variables. Some lenders will not lend on investment condos at any level, others will not lend to anyone without a 2 yr history of landlord experience.
IF you qualify, there is a boatload of money avaialable. Refi rate options for investment properties are the lowest that they have ever been!
