How Much Down Payment Do You Need for an Investment Property?
Under Freddie Mac's published limits for conventional loans, at least 15% for a one-unit rental and 25% for a building with 2 to 4 units. Freddie Mac allows up to 85% loan-to-value on a one-unit investment property purchase and 75% on 2 to 4 units, for loans that receive an Accept from its automated underwriting. That compares with up to 95% on a one-unit home you live in.
Last updated October 21, 2026How the limit turns into a down payment
The down payment is whatever the loan doesn't cover. At 85% loan-to-value, you put down 15%; at 75%, 25%. On a hypothetical $300,000 one-unit rental, that's $45,000; on a $500,000 fourplex, $125,000. Closing costs and reserves come on top.
What changes the amount
- Number of units. Freddie Mac's limit drops from 85% on one unit to 75% on 2 to 4 units.
- Your credit and the loan. Fannie Mae's Selling Guide says the maximum loan-to-value depends on your credit score, the type of mortgage, the number of units and how the property will be occupied.
- How it's underwritten. Freddie Mac's table lists investment property limits for loans with an automated Accept and shows none for manually underwritten investment loans.
Reserves on top of the down payment
Plan for savings after closing too. Fannie Mae's guide has its automated underwriting require six months of reserves on an investment property purchase, with more when you already have other financed properties.
If you'd rather qualify on the rent
A DSCR loan qualifies on the property's rent instead of your personal income; the programs we read publish limits that mean 15% to 25% down. See how much down payment for a DSCR loan.
| One-unit rental | Up to 85% loan-to-value at Freddie Mac, so 15% down |
|---|---|
| 2 to 4 units | Up to 75% at Freddie Mac, so 25% down |
| Home you live in | Up to 95% on one unit at Freddie Mac |
| What else moves it | Credit score, loan type, units and occupancy, per Fannie Mae |
| Reserves | Six months on an investment property in Fannie Mae's automated underwriting |
Related questions
Sources
- https://sf.freddiemac.com/general/maximum-ltv-tltv-htltv-ratio-requirements-for-conforming-and-super-conforming-mortgages
- https://sf.freddiemac.com/working-with-us/origination-underwriting/mortgage-products/investment-property-mortgages
- https://selling-guide.fanniemae.com/sel/b2-1.2-01/loan-value-ltv-ratios
- https://selling-guide.fanniemae.com/sel/b3-4.1-01/minimum-reserve-requirements
Sourced from licensed loan officers and brokers in the FreeRateUpdate network.
Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.