Been renting out a SFH for about 5 years. We moved out of it and rented it when we bought our newer house.
Now I’m looking to buy another house as an investment. Is there a way to secure a loan without putting down 25% since this is going to be an investment?
If you want conventional financing without the 20% or 25% down payment, you could look into FHA loans but their fees and mortgage insurance are a killer.
If you want non-FHA conventional financing, you could look into pulling out the equity in your other investment properties and using it as the down payment.
Other than that, you are going to have too look elsewhere. Hard money loans are short term and very expensive. You could look into seller financing (otherwise known as land contracts). This could be a viable option.
You need to keep in mind that how effectively you manage your investment will determine whether or not the investment helps you reach your financial goals. Great resource !
Another option is to buy a property on a land contract (i.e. using owner financing). These deals require relatively little money down. The interest rate is a little higher than conventional financing but sometimes it can be really worth it in the end.
If you are willing to put down say 10% then you may be able to motivate some sellers to consider the land contract option as they will be making interest on top of the purchase price.
Get a business line of credit (if you have the scores) the points are high but you will not come out of pocket. Then use that credit line to purchase your property with cash. Then re-fi your free and clear investment property to repay your business credit line.
Remember, line up your mortgage company and be pre-qualified for the re-financing. Again, the points after getting the line is high but you are not out of your own money at no point in this deal.