Real Estate Investing with Coach Carson #476: 5% Down Rental Loans: When They Work (And When They Don't)
Feb 23, 2026
Brian Maddox, investor-focused mortgage expert who helps investors with creative financing across U.S. markets. He unpacks 5% owner-occupied loans, co-sign and house-hack strategies. He compares FHA, VA, second-home and cash-out paths. He walks through BRRRR mechanics, lender rules, and common pitfalls to watch for.
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Use VA Loans As A Veteran Superpower
- Veterans should prioritize VA loans because they offer zero down for owner-occupied 1–4 unit purchases and no PMI; funding fee is financed unless waived for disability.
- VA allows multiple uses up to loan limits and offers an IRRRL refinance even after you stop occupying the property.
Buy Second Home Loans For Vacation Or ShortTerm Rentals
- Buy a property as a second home with 10% down if you can occupy it some of the time; you may run short-term or midterm rentals but not 12-month long-term leases initially.
- Second-home loans require strong disposable income since rental income from the new property usually can't be used to qualify.
Tap Equity With CashOut Refi Or HELOC Carefully
- Use a cash‑out refinance or HELOC on an existing property to fund down payments, timing the close so funds are available for purchase (note rescission rules on primary residences).
- Cash‑out limits: typically 80% on primary, 75% on investment; plan closings five business days before purchase if tapping primary due to three‑day rescission.