For those looking to buy your first rental property, or pick up an extra one now that prices make sense again, be aware that lenders have rolled back the down payment requirements for investment property. Most lenders I polled recently say that a 20% down payment is required for an investment property. Many of us remember when lenders required a 30% down payment for investment property, and I wonder how long it will be until we are back to those days. Lenders slowly but surely decreased the down payment requirement for investors during the housing boom and have slowly but surely increased that obstacle again. So, many would be investors who were waiting for prices to drop are now locked out of the market by down payment requirements. It is an interesting phenomena as prices drop lower and borrowed money becomes harder and harder to obtain.
Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com