Financing a duplex with under 25% down?

Question

Hi everyone, quick question. Does anyone know of a lender who would do under 25% down with a 30yr term for a duplex?
I’m in New Orleans, Louisiana bought a duplex last year with 25% down (purchase price $195k). Put in lots of work and upgrades and am looking to do a cash out refi but with 20% equity if possible.
Also, it's currently in the name of our LLC so open to business loan options.

Near 800 credit score, almost no debt, with steady 6 figure income from our 9-5’s.

Thanks in advance for your help!

Reid Chauvin · Answer

Hi @Genevieve Anderson - if you are looking to cash out refinance a 2-unit investment property, the max loan to value is 75%, and this is with a 'non-qm' product (this is a category of loan that is not backed by the government or Fannie Mae/Freddie Mac, unlike the majority of mortgages). I am not personally aware of any loan product where you can borrow more against your equity than that.

With the home being under an LLC, a non-qm loan is going to be your best bet in terms of rate/term and ease of qualification.

Feel free to reach out with any more questions!

With the home being under an LLC, a non-qm loan is going to be your best bet in terms of rate/term and ease of qualification.

Feel free to reach out with any more questions!

Bryan Maddex · Answer

Well this post was brought back from a LOOONG time ago!!

Correct answer may have changed in the last 4 years so here are some current options in case someone is searching for this in 2026:

Investment Purchase:
NonQM/DSCR now allows for as little as 15% down.
Fannie requires 25% down.

Primary Home (live in one unit for 12 months minimum):
3.5% down with FHA
5% down with Fannie

Sasha Mohammed · Answer

Purchase with 20% down is do-able pretty readily on DSCR financing these days. You'd have options here

Cash-out to 80% LTV, however, is going to be a bit harder to find, albeit possible.

I would also weigh the pros and cons of that extra 5% in cash-out proceeds -- it likely would come with much higher rates and may not even be worth it.

Hayden B. · Answer

Great responses - business purpose loans closing in LLCs are easy with non-QM lenders who are lenders filling the niche where Government Loans that check neat boxes related to W-2, tax returns, etc. exist.

a Non-QM lender means "non-qualifying" in the traditional check the boxes regulations imposed by Fannie Mae and Freddie Mac. I'm sure most non-QMs could handle this for you!

Frankie Vozzi · Answer

A lot of duplexes can still qualify with less than 25% down depending on:

• occupancy
• loan type
• seasoning
• how the property cash flows

Especially with strong credit and income like that.

The LLC side can change the options a bit, but investor-focused lenders are usually much more flexible than conventional banks on those structures.

Did the property appraise significantly higher after the upgrades?

Charles Parharm · Answer

There are definitely situations where investors can structure duplex financing with less than 25% down, but a lot depends on whether the property is owner-occupied, held in an LLC, or strictly investment use.

Once the property is titled in an LLC, many lenders move toward DSCR or commercial-style financing instead of traditional conventional financing. That can create flexibility, but it also changes reserve requirements, down payment expectations, and how the deal is evaluated overall.

One thing I always encourage investors around New Orleans to watch closely is the full monthly payment structure including insurance and flood costs because those numbers can significantly impact cash flow projections and loan qualification.

It sounds like you’re thinking about the right things strategically by evaluating equity position and financing structure together instead of only focusing on rate.

Happy to help you think through what options may fit your situation.

Elyse Simpson · Answer

Hey, Genevieve! This is definitely possible. 80% LTV Cash Out in the LLC's name is possible as well. I can provide a referral if you need one!

Brenna Carles · Answer

Hey Genevieve! Yes, you can do a duplex with 20% down DSCR loan. You can also do an 80% ltv cash out as well on these and keep it in the LLCs name. Hope this helps!

Timothy Hero · Answer

I know many lenders that offer this, but I can't promote due to BP's soliciting rules.

Genevieve Anderson · Answer

Thank you for confirming this info!! On to looking for a non- qm lender!

Financing a duplex with under 25% down?

Financing a duplex with under 25% down?

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