The most common way to get low-down-payment terms is to live in the property for at least one year.
These loans qualify you based on the property’s rental income rather than your personal income. While 20% down is the industry standard, some niche DSCR programs allow 10% to 15% down if the property's cash flow is exceptionally strong (often a 1.20 DSCR or higher). 3. Creative Financing Strategies buying investment property with 10 percent down
Buying an investment property with is a high-leverage strategy that typically requires moving away from "big bank" conventional loans, which usually demand 15% to 25% down for non-owner-occupied rentals. The most common way to get low-down-payment terms
Some lenders offer proprietary products designed specifically for investors that bypass standard Fannie Mae/ Freddie Mac guidelines. Fannie Mae's HomeReady or Freddie Mac's Home Possible
Fannie Mae's HomeReady or Freddie Mac's Home Possible may allow as little as 3% to 5% down for multi-unit properties if you occupy one of them. 2. Specialized Investor & Portfolio Loans
You take a first mortgage for 80%, a second mortgage or HELOC for 10%, and provide 10% in cash. This avoids PMI and keeps the primary loan at a more favorable rate.
While 10% is lower than the standard requirement, several specialized paths make it possible for seasoned or strategic investors: 1. House Hacking (Owner-Occupied)