Property With 10 Percent Down: Buying Investment

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.

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 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 .

If traditional lenders won't budge on the 20% rule, investors use "stacking" to reach the 10% out-of-pocket goal.

Some lenders offer proprietary products designed specifically for investors that bypass standard Fannie Mae/ Freddie Mac guidelines.

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.

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).

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