Minimum down payment for one unit investment properties is 20% although loan pricing is better with 25% down payment. 2-4 unit investment properties require a minimum 25% down payment and loan rates are slightly higher for 2-4 units than one unit even with 25% down. Maximum seller contribution toward closing costs is 2% of the sales price for investment properties and no gifts are allowed for down payment or closing costs on an investment property purchase.
Talk with your local lender today with questions or concerns. For some first time home buyers looking to make an investment, buying an investment property while living in one unit might make sense.
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