Some lenders offer proprietary products designed specifically for investors that bypass standard Fannie Mae/ Freddie Mac guidelines.
If traditional lenders won't budge on the 20% rule, investors use "stacking" to reach the 10% out-of-pocket goal.
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
While 10% is lower than the standard requirement, several specialized paths make it possible for seasoned or strategic investors: 1. House Hacking (Owner-Occupied)
You get a standard 75% LTV loan from a bank and convince the seller to "carry" a second lien for 15%, leaving you to only bring 10% to the table . While 20% down is the industry standard, some
The most common way to get low-down-payment terms is to live in the property for at least one year.
You can buy a 2–4 unit property with 3.5% down (or 10% if your credit score is between 500–579). You must live in one unit and can use up to 75% of the other units' projected rent to help qualify for the loan. House Hacking (Owner-Occupied) You get a standard 75%
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.
Some lenders offer proprietary products designed specifically for investors that bypass standard Fannie Mae/ Freddie Mac guidelines.
If traditional lenders won't budge on the 20% rule, investors use "stacking" to reach the 10% out-of-pocket goal.
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
While 10% is lower than the standard requirement, several specialized paths make it possible for seasoned or strategic investors: 1. House Hacking (Owner-Occupied)
You get a standard 75% LTV loan from a bank and convince the seller to "carry" a second lien for 15%, leaving you to only bring 10% to the table .
The most common way to get low-down-payment terms is to live in the property for at least one year.
You can buy a 2–4 unit property with 3.5% down (or 10% if your credit score is between 500–579). You must live in one unit and can use up to 75% of the other units' projected rent to help qualify for the loan.
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.