Can I buy an investment property with a conventional loan?
Yes — conventional is the standard mortgage path for investment properties. Down payment is typically 15% on a 1-unit and 25% on 2-4 unit investments. Rate is materially higher than primary residence due to LLPAs. Rental income usually counts toward qualifying at 75% of market or lease rent.
What this actually means.
Investment-property conventional financing: 1-unit investment: 15-20% minimum down, 6 months reserves on the subject property; 2-4 unit investment: 25% minimum down, often 6 months reserves on subject + 2 months on each additional financed property. Pricing: investment LLPA + LTV LLPA + credit LLPA stack to add 2-5% in points equivalent vs primary. Rental income: 75% of market rent (Fannie) or 75% of lease (similar Freddie rule), with adjustments for management experience. Subject to Fannie/Freddie guidelines.
What this looks like on a real file.
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.