Financing in Boston>Question Details

Matt F,  in Boston, MA

Can I finance an investment property with only 20 percent down?

Asked by Matt F, Boston, MA Wed Dec 28, 2011

I currently own my own my primary residence and also rent it out (it's a two family). I have two years of landlord experience there as well and the rent covers most of my mortgage.

Im looking at a second investment two family. I only have 20 percent down though. It seems like everyone is asking for 25-30 percent now. Is it still possible to finance an investment with 20 percent? I have a 742 credit score and the cash flow on the property will be roughly 1000 a month after mortgage.

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For further information and referance the link below details the LTV guidelines for Fannie Mae products.
2 votes Thank Flag Link Wed Dec 28, 2011
Thumbs up Carl! I was quite pleased to see another lender taking the time to post the "de facto" information. :)

That being said, anything is possible with private funds (local or small regional banks lending their own funds) but outside of that, you're looking at 25% down unless it's a HomePath eligible property, then a two flat can be purchased with only 20% down.

Happy house hunting!
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1 vote Thank Flag Link Tue Jan 10, 2012
HI, Matt.

It seems most people have the right of it here with standard guidelines requiring 20% on single family investment properties and 25% or more for multi-family investment properties. Depending on what your stated intentions are for your current property and your own willingness to compromise, there may be some moves we can make to help you out. Give me a shout when you're free and we'll talk about creative financing options. I'm also local and can meet with you in person if that helps...

0 votes Thank Flag Link Sun Jun 17, 2012
I would talk to the person who wrote the note on your existing property. Sometimes they can refer you to another loan originator for the deals they are not able to do. If they can do it, you will usually have an easier time getting the loan.

(Keep in mind that when you give a thumbs up to an answer - or better choose an answer as a best answer - it helps the answerer on this site.)
0 votes Thank Flag Link Mon Jan 9, 2012
Depends on a lot of other factors related to the property but you should be ok.
We have an awesome referral who will shoot you straight on your options. Feel free to check him out and tell him Territory sent you:

Your best option will probably be a local bank so also try there.

Good luck!
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0 votes Thank Flag Link Wed Jan 4, 2012
Call Chris Downey at Harbor Mortgage Solutions, he'll be able to help you. (781) 843-5553.
0 votes Thank Flag Link Wed Dec 28, 2011
Hi Matt,
What do you intend to do with the property please? rent it out, or condo it out?
0 votes Thank Flag Link Wed Dec 28, 2011
Yes. Contact a small local bank, possibly one that you already do business with. I've been successful with Zack Swain of Bank Of Canton. Also, The Cooperative Bank in Roslindale-ask for Marie Kunnerth.
0 votes Thank Flag Link Wed Dec 28, 2011
If you are looking to buy a single family property then 20% down will work. If the property has two to four units you will need a 25% down payment. These are Fannie and Freddie guideline limitations. Good Luck
0 votes Thank Flag Link Wed Dec 28, 2011
I can connect you with a lender who can help you find the right loan. you should be just fine with a 20% down payment
0 votes Thank Flag Link Wed Dec 28, 2011
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