*On a conventional loan, you can put down as little as 5-10% for a down payment.
*If you are taking out an additional loan and/or it's for an investment property, the minimum amount you need for a down payment is 15%. At 15% you will have to pay extra fees and PMI. With 20% down, you get a lower rate and no PMI. This is really your minimum needed. If you put 25% down, you can get even better interest rates and deals on your loan.
The average home price in AZ is $250,000. This means you need at least $50,000 for your down payment to get you going on your investment property.
Now, where can you find $50,000. Here's some ideas...
*Save It
*Cash out Stock Options or Stock Investments
*Use your Bonus, or several Bonuses
*Refinance Your Current Home, and Pull the Money out of That
*Get a Line of Credit on Your Current Home
*Use Equity from a Rental Property You Already Own (Once you get started it gets easier to get more investments going)
*Get Gifted Funds From Family (ie. inheritance)
*Sell Collateral (Motorcycle, RV, Camper, etc. that you no longer use)
*Go In on the Project With Family or Friends, then You'll Need to Bring Less Money To the Table
Let me know if you have more questions about getting started with an investment property.
