For a 2-3 unit investment property, do you need 30% down, or the usual 20%?

Asked by Kelsey, 94110 Tue Jan 20, 2009

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Lew Corcoran, Agent, Easton, MA
Wed Jan 21, 2009
For 2- and 3-unit investment properties, you will need to put at least 25% down on a purchase.
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Luba Muziche…, Agent, San Francisco, CA
Tue Jan 20, 2009
As Lance mentioned, loan programs do change frequently. I just asked a lender this same question at the beginning of January, and the answer was:

It really depends on the size of the loan, whether there are any businesses in the building, who will occupy the units and where the building is located, however, typically speaking about 30% down is needed for such a purchase.

I know the "it depends" parts of the answer probably aren't very helpful, but without knowing the details of the building, it will be hard for anyone here to give you a "real" answer.

The best advice? Talk to a lender you trust. If you don't have one, I'm sure you can find a good referral from one of the many experts here on Trulia, including yours truly. :-)

All the best!
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Marty S, , Irvine, CA
Tue Jan 20, 2009
25% is what you are going to need.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
877-238-6324 FAX
0 votes
Lance King, Agent, San Francisco, CA
Tue Jan 20, 2009

I'm quite familiar with this subject as we have clients currently looking for the same type of property and have bought similar properties for ourselves. The last time we checked - last month - the loan program for investment properties was as follows;

25% down
approx $500K Max loan amount on a 2 Unit bldg
approx $645K max loan amount on a 3 Unit bldg
approx $800K max loan amount on a 4 Unit bldg

Loan programs change frequently, so if you would like some referrals for solid lenders and/or assistance with finding/buying properties, contact us at your convenience.

Best Regards,

Lance King/Managing Broker
415.722.5549 Cell
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