While it is recommended to have at least 20% down to avoid Mortgage Default Insurance, you still can purchase your investment with less than 20% down payment.
So, what down payment should you have then? Here is a break down:
- For homes $500,000 or less, a 5% down payment is required;
- For homes $500,000 or less than 1 mil., you'll need to put 5% down for the first $500,000 and 10% for the remaining purchase price;
- And finally homes that are 1 mil. or more require a 20% down payment and are not eligible for mortgage loan insurance.
*Example: If the property price is $750,000, the minimum down payment would be $25,000 (5% from first $500,000) + $25,000 (10% from the difference $750,000-$500,000=$250,000) Total downpayment is $50,000.