What Kind of Down Payment Do You Need to Buy a Philadelphia Investment Property?
Many Of Our Clients Are Unclear On the Down Payment Needed to Buy A Multi Family Property
We thought we would clarify. There are different options available for different kinds of buyers. There is no one size fits all option, unfortunately.
- 3.5% down – for the buyer who will be an owner occupant they can go FHA. They can boost the purchase price by 6% to help cover closing costs. You can only have 1 FHA loan at a time.
- 20% down – for the conventional buyer who is an owner occupant.
- 25-30% – for the investor who will not be occupying.
Your rates, terms & eligibility are determined by your credit, income & debt.
If you are planning on investing in a single family you may have more options with a conventional loan in terms of putting down 5 or 10%.
Our Best Advice
Use a loan officer who does a lot of multi family loans. They will know the requirements & regulations better than someone who usually works with a traditional buyer.
We have great referrals for lenders well versed in the purchase of multi family properties. If you would like a referral, feel free to contact us!
Utilize the services of an agent who sells a lot of multi family property. Jordan Brody & Co. specializes in investment property, specifically, multi families. Contact us today if you want more information!
Set up a custom multi family search here.