How much down for a conventional investment property?
Typically 15% minimum on 1-unit investment, 25% on 2-4 unit investment. Some lender programs accept 20% on 1-unit. Larger down payments improve pricing through LLPAs and may be the deciding factor in cash-flow math.
What this actually means.
Fannie/Freddie published minimums on investment property: 1-unit purchase 15%, 2-unit 25%, 3-4 unit 25%. Rate-and-term refinance and cash-out refinance have their own LTV caps that reduce maximum loan amounts on existing investment property. Some borrowers go in with 25% down even on a 1-unit to avoid the larger LLPA hit at 85% LTV. Subject to Fannie/Freddie guidelines.
Where this can move.
Down payment, reserves, rental income calculation, multi-financed-property reserve rules, and investment LLPAs all stack to drive pricing.
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More conventional questions on Investment Property.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.