Real Estate Investors Questions
Explore questions about financing rental homes and investment properties.
How much down do I need for an investment property?
Quick Answer
That will depend on the specific loan type. Typically I would plan for 20% down. If youre buying a second home, you could put as little as 10% down, and if youre buying a one unit you could put down as little as 15% down. 2-4 units typically require 25% down. There are some other programs such as a DSCR loan where you could put as little as 15% down. Each program has different qualifying factors. First time investors typically need to put more down.
You could also keep your current home and rent it out, then look at buying a new primary home with the minimum down.
If you will live in one unit, ask about owner occupied financing where you could put the minimum down and use rental income from the other units as income to help qualify for a higher purchase price.
Investors should also plan for closing costs and possibly cash reserves.
Reach out to me and we can go over your options together. I am able to help finance properties with up to 20 units.
Still have a mortgage question?
Every situation is different. If you’re not sure which option fits your situation, tell me what you’re trying to accomplish and I’ll help you understand the next step.