Question: When real estate investing what is the minimum for a down payment on a house?

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Answer #1:

It's usually 10% but in some cases 20% especially in this current market. Some HUD programs allow a 3% down payment. Determine your budget and find one that fits.

Answer #2:

As an investor in today's real estate and mortgage market, you will need at least 25% down, points and closing costs (totaling about 29% of the sales price) to get a bank loan. Of course, you will also need excellent credit and the property will need to generate positive cash flow.

Best wishes and good luck.

Answer #3:

It depends on your financial situation, and what the bank will let you do.

Some banks will let you borrow 100% of the property, since the rent will cover the payments (assuming you can rent it out!)

If you're not able or comfortable with this, then the more money you put down the better for your comfort level.

Then again, the more money YOU put down, the less money you can claim in tax - in some countries (like Australia), you can claim the interest payments you make on an investment loan. So if you put down 50% yourself, your loan is less, so you claim less.

Answer #4:

The rules are different for income property. If you don't already own a home, buy one and live in it for 2 years and then rent it out. That way you qualify for the first-time buyer incentives, such as the $8,000. tax credit, etc.





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