A lot of people prevent to invest in property because they concern and also make an effective large, fat down payment. Although not, this new 20 percent code no further applies to taking property mortgage .

A great 6 per cent deposit getting first-time customers was a much better ballpark figure. With a residential property loan, mortgage lenders may possibly not be prepared to offer as much freedom. Shelly D. Johnson, Divisional Risk Manager within Cornerstone Home Lending, Inc., states, Minimal down payment necessary for investment qualities selections off 15 so you can 25 %, compared to the at least down payment having primary otherwise 2nd homes between step 3 to help you fifteen %.

Remember this: FHA and Virtual assistant lenders are only offered towards primary residences (while they can be used to household deceive which have a two-4 unit property!). Conventional finance promote off money as low as 3 per cent toward first homes, however, investment property fund require a minimum of 15 percent off.