Is there anyway around the 20-25% down payment on a rental/non-primary residence? I want to purchase a home to use as a VRBO style investment property.

TIA!

Find a partner and each put 12.5% down?

But for real, you can find a home that needs some work and use the BRRRR (buy, rehab, rent, refinance, repeat) method, but I just learned about that last week. Made an offer on a place amd didn't get it but I have the big.

You can do as little as 15% down on an investment single family home. We do it all the time. Rates are of course higher then if you put down say 25% and it will be a full doc loan meaning you do have to qualify with your paystubs, tax returns etc but yes it can be done. We just closed one yesterday in fact.

Find a good off market deal, buy with hard money and force appreciation is the best way I know. Also known as the BRRR. Of course that's the challenge in this market but if you can figure it out you'll typically end up with a refi that has 20% equity or better and avoid the down payment and PMI.

I'm exploring 203K loans right now. That loan will cover the purchase and renovations but they are a pain in the ass apparently. They can be done with as little as 5% down I believe and can cover all repairs. Seems like a great way to house hack more rentals to me.

Any lenders have experience or advice with the 203K?

203k is a FHA renovation product, so they do have to be owner occupied and yes they can be a pain. There is also a Fannie Mae product that is called a Homestyle that can be used on owner occupied loans with 5% down or non-owner with 20% that can fund renovations as well. Both option can take a while to close and are not a great deal of fun for the borrower or contractor.

We have a bridge product that we can close quickly on that sellers love with as little as 5% down that needs light rehab. You can then use your funds or our funds depending on the situation to fix the property then turn around and refinance the property into a conventional loan once you have improved the value.

of, if you have a property that needs substantial rehab but can get the property at 75% or less after repair value then it is possible to have very little or any of your money into the deal. But, those deals are hard to find but they do exist. We started one a few days ago that the numbers look like they are going to come out perfect for the borrower.

Thanks Jay, pretty much what I have heard. It seems like a great product for someone like me who want's to buy small MF and house hack. I'm also considering using my TREC inspections license to be one of the field guys for the program. Again sounds like a pain in the ass but if it will help me learn the process for my own needs.

My wife and I are moving into our motorhome full time this week, Lord help us. That will allow us to rent our current apartment, am I able to count any of that income towards either those programs?

Jay@AgsReward.com said:

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You can do as little as 15% down on an investment single family home. We do it all the time. Rates are of course higher then if you put down say 25% and it will be a full doc loan meaning you do have to qualify with your paystubs, tax returns etc but yes it can be done. We just closed one yesterday in fact.

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What is the ballpark rate, assuming excellent credit, W2 full time job, and a couple of SF rentals on the books??

high 5's to low 6's for a 30 year fixed with 15% down and no mortgage insurance. Here is how we structure it: https://hurstlending.com/investor-loans/low-downpayment-investor-loan-15/