25% down payment on NOO 3 unit property - only option?


I am looking to purchase my first cash flow investment property in the Boston MA area. I have located a property with a great potential for return. The only problem I am having is every lender so far is looking for a 25% down payment + 6 months reserves + cash for closing costs. The property also will probably need some cleanup which will also be additional cash once the deal closes. All of these add up to a significant amount of cash. I can come up with most of it, however, it would be tight. It would be significantly easier if the down payment was only 20%. So far I have contacted 3-4 lenders who have said 25% is as low as they can go. Is anyone familiar with a bank that might do 20% down payment? Otherwise any advice on financing this deal would be appreciated. Thanks

If it’s a 3 unit property, you may be able to look into some kind of USDA money. I know in Virginia VHDA offers commercial loans, but for rural areas and multiple property units. The rates are amazing at around 5 percent for 30 years 10% down and money for repairs. The best part is that you don’t have to personally guarantee the loan, and the property stands good for the note. A low LTV, as well… Go to VHDA’s website and check it out. You may have something similar in your area.

Can you owner-occupy the house or one of the units? Much easier to get owner occupied–4.5% !!!—financing.