Down Payments and Loan Options

Your options for loans are more limited for an investment than they would be for an owner-occupied property. Lenders will require a higher down payment and potentially other terms as an investor. However, the higher down payment will create more cash flow. You just have to watch your margins carefully. But with creativityanddetermination,youcanfindoptionsforfinancing.

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Also, don't forget about the closing costs of a loan. The buyer will pay typically 2-4% in closing costs, which consist of a myriad of costs in buying a house. Your lender, upon loan application, will give you an estimate of the closing costs. is an article detailing more about a buyer's closing costs. Here Alternatively, you can build those costs into the loan itself. You would accomplish that by offering the seller an amount above the final price, and then including an addendum asking the seller to pay your closing costs of up to a certain amount. That will effectively 'reduce' your offer to the seller by thatamount.