Investor mortgage with 10% down!

14 Replies

Hello all,

Does anyone know if there are options out there for a 30 year fixed loan with 10% down instead of the traditional 20%? I can’t seem to find these type of loans and was hoping someone can point me in the right direction. I cannot go fha since I will not be living in the unit.

Thank you for your time!


@Tommy Martinez

I had a hard time finding a mortgage company that have such mortgages. Apparently the new Fannie and Freddie guidelines require a 25% down payment for any investment property. So for most mortgage companies that is all they offer. I had to bite the bullet and use that.

However, I do know a company that have their own portfolio mortgage program, they offer a 15% down payment as long as the purchase price of the investment property is $100K or MORE. Hope that is a form of consolidation.

Another option is to look up local banks and credit unions around the place you are going to invest in and find out if they have lower down payment requirements (you may have a better chance with credit unions since they tend to keep their own portfolios than sell it to Fannie or Freddie).  

hard to find,  but there are still owner financing with a 10% down and with good interest rate.

15% down payment for 1 unit is required for investment property. 

@Tommy Martinez MB offer and some other lenders offer too. The lender will charge MI on loan because its less than 20% down payment. 

@Tommy Martinez

I used to use ABNB FCU locally in Norfolk, VA at 10% down but they have discontinued that program due to new NCUA guidelines that limits FCU's to 20% down minimum.

I have now switched over to Wells Fargo who does 15% on investment properties. APR will be dependent on your credit score. DM me if you'd like the POC information.

@Brian Adazdi its for 1 unit not only for single family residence. MB offer 15% down for 1 unit with MI.

@Tommy Martinez   If you're buying single family investment properties, 15% down will be the minimum for conventional loans, and 2-4 units will require 25% down.  For the 15% down you can opt for either monthly mortgage insurance, or lender paid mortgage insurance with a slightly higher rate.  Some companies might advertise "no mortgage insurance" or "no monthly mortgage insurance" but it's really paid by the lender and charged to you in the form of a higher interest rate.  Payment wise they both will be similar - the difference is that long term the monthly MI will eventually come off, whereas the higher rate is for the length of the loan.

HomePath homes use to be offered at a 10% down for investors as long as you had less than 4 properties (loans) in your name.  However, the HomePath program may be slim on properties now.  It was a program designed to handle the flood of properties taken in as REOs during the market downturn in 2008.  It was big for several years.  I haven't checked in on it lately, but you may want to see if there is anything there worth considering.

You guys are awesome! Thank you for all the feedback. I'm thinking a Home style renovation loan would be ideal for my situation. Any recommendations in CA?

Originally posted by @Tommy Martinez :

You guys are awesome! Thank you for all the feedback. I'm thinking a Home style renovation loan would be ideal for my situation. Any recommendations in CA?

I reckon it's weird that the policy of Homestyle Loans (a Fannie Mae product) to lend 65-95% LTV (with caveats) to Investors, seems to fly in the face of their normal 15% minimum down.

Please let us know if you're successful in exploiting what I see as a Fannie Mae loophole!...

We can do 15% down for an investment property. There will be PMI on the loan or you can pay a fee to have no PMI

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