Standard down payment

This is just a general question, and is not targetted at a specific property yet, just fishing for comments.

What is more standard these days, 10% or 15% down, on a property in the 100k range? I have excellent credit, and make 100k per year.

For a private residence or an investment property?

For my investment properties, I keep at least 20% down…a lot of folks are taking second mortgages to keep the down payment low and to avoid PMI…


20% down will avoid PMI and second mortgages. If there is a standard, then 20% is it. I am going with a 70% first and a 25% second on a stated income NOO property that I will close in early Feb. I was offered 30% on the second but didn’t want to take the 2% rate hit.

The point is that down payments range from 0% to huge depending upon the property, the lender, and the borrower.

That question really depends on your Lender… Sometimes they can get you a better rate if you are placing 15% - 20% down (Sharing the Risk) then just putting down 10%.

If you do go the 10% down route then you might consider doing a 80/10/10 loan to avoid PMI on your loan.

Your down payment may also depend upon how long you plan to hold the property. If you are purchasing with the intent to sell quickly then getting 100% financing may work.

Also depends on how many properties you want to purchase in the next several months to a year. If multiple properties, do you have the means to continue putting down 10,15,20%? Some clients have limited funds and want to spread them out.