I am in CT. I would like to know if mortgage companies are still allowing 10% down payments on 2 Family houses. I know anything more then a 2 family they are requiring at least 20% but most likely 25% down. I also know that they require you only have 4 or less mortgages outstanding at one time including your residence.

Thanks so much for yoru note Joe. Our team here in Minnesota has worked with a number of different investors over the years. In the traditional sense, nearly all lenders are requiring 20% plus down on the various investment properties for sale. However, I know there are some great rehab financing packages out there where in investors are able to purchase homes for sale with a lower down payment. Our team here in MN works with a top lender that has some great programs.

Nonetheless, I am amazed how many great buys there are right now for investors here in the Minnesota real estate market. With so many properties for sale on the MLS, investors are having a "hey day" in choosing their properties!

Yes, indeed. Mortgage companies finally seem to have learned the great lesson out of the submortgage crisis.

JoeinCT: The short answer to your question is that, yes, if you are looking to only put down 10%, there are a few lenders out there, but they are very hard to find. I am looking for them myself now but I know they exist - it would have to be private lenders, since these mortgages wouldn't be conforming to Fannie/Freddy standards - which is the only thing anyone is originating now. I know of 1 lender in FL that does 10% at 7.5% interest only but they put a 6 year baloon on it.

Ryan O'Neill: I don't really know if that second paragraph of your post shamelessly promoting your market was really necessary. We don't know each other and you could be a cool guy, but posts like that just stink to me.

I've heard of it happening, but you'll have to have good credit and documentable income.

There are a few lenders out there still willing to do 10% down, but I am not sure that they are extending to new investors too much right now.

For a flip I got one lender willing to finance 100% short term. Conventional not hard money. Also got banks willing to do full financing if the amount is under 80-85% LTV. Of course there are strong assets and scores to back this up.

This is what I've found too - 20% down and a million hoops to jump through to get it.

I think at this point, your only shot at getting that kind of leverage is private lenders.

Or local/community banks who have special loan programs in house.