Oops another thing...Fannie changed their guidelines, so make sure you income qualify. The maximum debt to income (DTI) ratio was 50%, now it's 45%. Remember, you have to qualify using your income versus your current housing payment and the rental payment. If you are a first time investor, you cannot use the income from the property to offset the income of the rental property. If you are a veteran investor, your most recent purchases (within a year) must have at least 30% equity in them in order to use the rental income for qualifying purposes (FNMA ruling June 2009). Fannie is contemplating on requiring 2 appraisals soon. I'm hoping that will do away with HVCC. However, FNMA's homepath properties don't require a new appraisal. You can go to a traditional bank with 20% down. Most Brokers use non-traditional banks that require 25% down which is why you'll see different answers.