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.
Plain-English explanation
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.
What can change the answer?
Down payment, reserves, rental income calculation, multi-financed-property reserve rules, and investment LLPAs all stack to drive pricing.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
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.