Investment Condo Finance Options with <25% Down?

[TeCKis300]

I’m interested in purchase a second investment condo. I’m very familiar with the financing options for a traditional loan with 25% down.

Question is, I’d like to not sink as much equity into this purchase.

What good financing options are out there for say a 10% to 20% down option? What kind of numbers am I looking at for rates, PMI, etc?

This is for a 1/1 condo in the SD region. Price ~$225k.

[gzz]

You will find a lender but the rate will be so high it kills the deal. Just put down 25%.

[TeCKis300]

That’s what I’ve been finding, which is why I’m reaching out here.

Surely there are some more options or creative options out there?

[Coronita]

If you don’t mind co-mingling the finances on your primary with your rental, you could consider cash-out refinancing on your primary (assuming you have $225k in equity)….That would probably be your best rate.

You would then report that portion of mortgage interest against your second property.

[TeCKis300]

I was able to find out that the particular complex I’m looking at is on the FHA approved list.

Any thoughts on FHA loans? I’ve done plenty of normal loans, but never tried this path before.

Are the rate competitive? PMI?

Do I just work with a regular broker or do I have to seek out an FHA specialist?

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