20% dp for multi unit homes?
My business partners and I are looking at some investment properties in the DC area. We plan to buy a 4 unit residential apartment to rent out. We’d like to know what the current down payment requirements are. Is 20% the industry standard for multi-unit homes? by sthomas241 from Washington, District Of Columbia. Nov 19th 2021
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Yes, and no. Fannie Mae and Freddie Mac type loans typically require 25% down on MULTI-FAMILY investment properties. 15% down is allowed on single family investment properties, but you pay a higher interest rate for not doing at least 20% down. Non-QM loans, and in-house one off loans typically will require at least 20% down. I lend for properties in MN, WI, IA, ND, and SD. Find me at JoeMetzler.com - Cambria Mortgage, NMLS 274132
If one of you will be living in the unit you can put down as little as 5% as long as the loan amount doesn't exceed $1,147,400. If the loan amount is greater you'll need to put down 25%. If all 4 units will be investment you'll need to put down 25% contact me and lets discuss. I'm a mortgage loan officer in the DC Metro Area who lives in the DC Metro Area licensed in DC, MD, VA. www.teamdarius.com darius@teamdarius.com
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