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Investors typically need 25% down.
Fannie and Freddie
Investors here do 100% cash by grouping up to buy. Mostly multi unit properties.
I forget which website, but the other day I looked into the cost of PMI and it was surprisingly cheap - about 3.1% APR.
For someone looking to leverage up their investments, that's a good rate IMO.
e.g., for each 100k of the home, instead of making a 20% of down payment, just make $3k (3%, the minimum down payment, I think) and the other 17% via PMI
17k * 3.1% = $527 a yr in interest.
Then, take the 17k you still have and invest it elsewhere.
Are you saying that 3.1% PMI is the total cost of borrowing that 17% extra? Or is 3.1% PMI on top of the 4% for the 30 year mortgage?
Plus I don't like dealing with other peoples shit. Unless it's a condo on the beach in Maui haha... That's worth it.
My owner peers are >90% nearly dead so this decade is going to be interesting.The going joke around me is that whenever you see an ambulance going down the street there will another house up for sale! My neighborhood was developed in 1961, so original owners who were young when they bought these starter homes are just about done. Sad to think back to times now far gone... someone graduates from college (debt free), gets their first full-time job, gets married, and can immediately buy a house that now wouldn't be affordable even at 1/3 the price.
3.75%, 5%, 10% for instance
According to Forbes, the median down payment for a mortgage is only 5%
https://www.forbes.com/sites/samanthasharf/2019/07/08/how-much-do-you-really-need-for-a-down-payment/
Is that possible??