Financing in Norton>Question Details

Finance, Home Owner in Norton, OH

how much down for a rental property, can i get a loan?

Asked by Finance, Norton, OH Sun Jan 16, 2011

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The minimum down payment required for single family homes, based on lender, Fannie Mae & Freddie Mac guidelines, is 20% of the purchase price. The mimimum down payment for condos and 2-4 units is 25% of the purchase price.

0 votes Thank Flag Link Mon Jan 17, 2011
I would suggest that you speak with a Lender in Ohio with the details of the purchase you desire. I would say that you would need at least 20% down. As said by others you will need an above average credit score. Many lenders limit the number of Investment Property Mortgages that you can have and they also require you to have funds in reserves to cover payments.
0 votes Thank Flag Link Sun Jan 16, 2011
I'm located in Northeast OH too. So, I can give you an applicable answer from the last investment property we sold last year. The Buyer had great credit. She had to put at least 20% down. And, the interest rate was fixed at 6%. Yes, investment mortage loans carry a higher interest rate than owner occupied mortgage loans. I suggest that you talk to a loan officer to determine if you qualify for an investment mortgage loan. FHA loans are not available for investment property.
0 votes Thank Flag Link Sun Jan 16, 2011
To better answer your questions you should plan to speak to a loan officer at your bank or contact a mortgage broker. Most investor loans these days require a 20% down payment but I have heard of others with less down if you have the income and credit to qualify. Ask your lender about FHA loans and if you can qualify for their 3.5% down payment.
0 votes Thank Flag Link Sun Jan 16, 2011
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