Buying Investment Property | With 10 Percent Down

The most common way to get low-down-payment terms is to live in the property for at least one year.

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. buying investment property with 10 percent down

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. The most common way to get low-down-payment terms

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. Smaller local banks or credit unions often keep

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