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).
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.
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 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.
Some lenders offer proprietary products designed specifically for investors that bypass standard Fannie Mae/ Freddie Mac guidelines.
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).
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 . buying investment property with 10 percent down
If traditional lenders won't budge on the 20% rule, investors use "stacking" to reach the 10% out-of-pocket goal. You negotiate directly with the seller to act as the lender
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%
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.
Some lenders offer proprietary products designed specifically for investors that bypass standard Fannie Mae/ Freddie Mac guidelines.