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 negotiate directly with the seller to act as the lender. They might accept 10% down, and you skip the strict bank underwriting and private mortgage insurance (PMI).
If traditional lenders won't budge on the 20% rule, investors use "stacking" to reach the 10% out-of-pocket goal. 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 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. Fannie Mae's HomeReady or Freddie Mac's Home Possible
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.
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. They might accept 10% down, and you skip
Smaller local banks or credit unions often keep loans on their own books (portfolio loans). This allows them to offer 10% down terms for well-qualified investors with high credit scores (720+) and significant cash reserves.