What is the minimum down payment rental property? Also if I will purchase rental property such as an aprtment building and live in one of the units and rent out others will that be considered rental property. What is the best way to go about financing this with arround 15-20% downpayment?
2006-10-12 19:54:39 · 3 answers · asked by Russell R 1 in Business & Finance ➔ Renting & Real Estate
To get prime rates on investment property generally requires 30% - 40% down. You'll generally need at least 20% down to get funding at all from most traditional sources.
Building a long-term relationship with a small local bank can often help immensely. Once you've built a reputation as an astute, low-risk investor you may well get access to better funding options.
Living in one unit will only get you the lower residential rates if the property is 4 units or less.
2006-10-12 23:14:08 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
to get good interest rate for investment property , you have to put 20-30% down payment, but you can get loan with 5% down. talk to mortgage broker and let him explain you the options you have. if you going to live in this property, this will also help you greatly.
2006-10-14 01:35:37 · answer #2 · answered by bianca 4 · 0⤊ 0⤋
20 % but ask the mortgage broker where they will give a interest rate break. also shop the loan around to at least three lenders
2006-10-13 02:59:42 · answer #3 · answered by learningnewthings 4 · 0⤊ 0⤋