Down — Buying Investment Property With 10 Percent

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

While 10% is lower than the standard requirement, several specialized paths make it possible for seasoned or strategic investors: 1. House Hacking (Owner-Occupied) You negotiate directly with the seller to act as the lender

These loans qualify you based on the property’s rental income rather than your personal income. While 20% down is the industry standard, some niche DSCR programs allow 10% to 15% down if the property's cash flow is exceptionally strong (often a 1.20 DSCR or higher). 3. Creative Financing Strategies While 10% is lower than the standard requirement,

Some lenders offer proprietary products designed specifically for investors that bypass standard Fannie Mae/ Freddie Mac guidelines.

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.