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.
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.
Some lenders offer proprietary products designed specifically for investors that bypass standard Fannie Mae/ Freddie Mac guidelines. 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.
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). Smaller local banks or credit unions often keep
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
If traditional lenders won't budge on the 20% rule, investors use "stacking" to reach the 10% out-of-pocket goal. You must live in one unit and can
The most common way to get low-down-payment terms is to live in the property for at least one year.