Buying rental property

**jmorrison** · 12-31-2007, 08:40 AM

Can anyone help me? Ive been thinking about buying some rental properties. Is the typical down payment higher on buying rental properties, and if so can anyone tell me a round about percentage?

**R-Deal** · 01-05-2008, 01:43 PM

The times have changed a lot recently and even daily on mortgage rules. The entire down payment issue depends largely on your credit score and the property. Single family residences and duplexes are easier to fund for non owner occupants than four plex, and then apartment complexes are another animal completely. Generally if you have really good credit and that is not an issue you can get non owner occupant money at 70-80% loan to value....perfect credit may write its own rules (700-900) range but generally all that I have seen and done recently in the 600's FICO range is stuck at those ratios....anyone else seen different?

**Codythebest** · 01-05-2008, 05:39 PM

20%...if your rentals are investments.

**LOTrainer** · 01-05-2008, 08:30 PM

Originally Posted by jmorrison

Can anyone help me? Ive been thinking about buying some rental properties. Is the typical down payment higher on buying rental properties, and if so can anyone tell me a round about percentage?

Round about, you are looking at putting 20-25% down payment. These are riskier loans, so the lenders/investors in the NOO game right now are really cracking down on their financing percentages. There have been a few companies that have been pulling out of investment properties as well.

Overall, and a general rule of thumb, if you put 20% down, you will most likely have an easier time qualifying for the loan as long as there are no major hiccups.