This may be a really dumb question, but I'm curious and not ready to discuss with a lender just yet.
This is our situation: we own our home outright (paid it off late last year) and we're considering buying a rental property. I understand that an investment property mortgage typically requires a 20% down payment. But I'm wondering if since we don't have another mortgage (and zero debt, period), we could get away with a 10% down payment? What other terms would be typical under these circumstances? And how would that scenario change if we were to make the new property our primary residence and rent the home we're currently in?
Thanks in advance for any and all answers!
This is our situation: we own our home outright (paid it off late last year) and we're considering buying a rental property. I understand that an investment property mortgage typically requires a 20% down payment. But I'm wondering if since we don't have another mortgage (and zero debt, period), we could get away with a 10% down payment? What other terms would be typical under these circumstances? And how would that scenario change if we were to make the new property our primary residence and rent the home we're currently in?
Thanks in advance for any and all answers!