Owning an investment property can be a rewarding way to generate income. And, if it’s multi-family units, you might choose to live there too.
If you have explored financing options for an investment property, you may have discovered there can be a high hurdle when it comes to the down payment. Buying investment property usually requires up to 25% of the property’s value as a down payment. That can be a deal breaker, especially if you’re new to property management.
Not if you partner with First Class Mortgage. We have a unique mortgage program for investors like you.
With just a 5% down payment, you can benefit from the advantages of owning rental properties:
- Income tax benefits include deductions for expenses like property tax, mortgage interest, insurance, repairs, and upgrades.
- A multi-family property can stabilize your cash flow.
- Rent payments help boost the equity in your property faster.
Homes that qualify for this program include duplexes, fourplexes, condominiums, and townhomes. Each must have its own separate entrance and legal address. There can be commercial space in the building, but at least 51% of it must be residential. Properties with five or more units are considered commercial real estate and won’t qualify for the 5% down payment program.
To be eligible for our 5% down payment program, you must live in one of the residential units you’re purchasing. And the property can’t have more than four units. There are other mortgage qualifications as well, such as creditworthiness and proof of income, but you may be able to use future rental income to qualify.
If your goals include property management, this 5% down payment program is a compelling reason to move forward. We’d love to share more information with you and partner with you along the way.