Real Estate Investors
How Much Down Payment Do You Need for an Investment Property?
Typical down payment, reserve and credit requirements for rental property financing, and how the numbers change with unit count and loan type.
Updated 2026-08-17| Applies to: Buyers financing a rental property they will not occupy.
The short answer
Most investment property financing starts around 15% to 25% down depending on unit count and loan type, and lenders usually require verified reserves after closing on top of that down payment.
Investment property pricing assumes more risk than a primary residence, so equity requirements are higher and the cash you need after closing matters as much as the cash you need at closing.
Typical ranges
| Scenario | Common down payment |
|---|---|
| Conventional single unit rental | 15% to 25% |
| Conventional two to four unit rental | 25% or more |
| DSCR programs | 20% to 25% |
| Owner occupied two to four unit | As low as 3.5% with FHA |
The last row is the exception worth knowing. If you live in one unit of a two to four unit property, you may qualify for primary residence financing with a much smaller down payment.
Reserves are part of the requirement
Lenders typically want to see several months of the new payment left in verified accounts after closing, and sometimes reserves for other financed properties you own. Retirement accounts often count at a discounted value.
Other costs investors underestimate
- Landlord insurance, which usually costs more than a homeowner policy
- Higher property tax bills after a sale resets the county's valuation in some cases
- Vacancy, maintenance and management, which lenders do not fund
- Rehab costs on older housing stock common in Akron, Canton and Cleveland neighborhoods
Requirements vary by lender, credit profile and property. Nothing here is a commitment to lend.
Common mistakes to avoid
- Planning for the down payment but not the post closing reserve requirement
- Assuming rental income counts fully toward qualifying before an appraisal or lease supports it
- Overlooking how much higher landlord insurance and county taxes can run
Frequently Asked Questions
People also ask
Do DSCR loans require personal income documentation?
Generally no, DSCR loans focus primarily on the property's rental income relative to its payment rather than the borrower's personal income or employment history, though credit and reserves are still reviewed.
Read: Investment Property Mortgages in Northeast OhioDo DSCR loans require tax returns?
Generally no. Qualification is based on the property's income, credit, down payment and reserves rather than personal tax returns, though individual lenders can ask for more documentation.
Read: DSCR Loans ExplainedHow much of my rent will a lender count?
Commonly around 75% of gross rent, though the exact treatment depends on the program and whether the income appears on your tax returns.
Read: Can Rental Income Help Me Qualify for a Mortgage?Can I use projected Airbnb income to qualify?
Some DSCR and non QM programs allow it with platform statements or a market analysis. Conventional financing generally does not use projected nightly income.
Read: Financing a Short Term Rental PropertyCan I buy a duplex with 3.5% down?
It is possible with FHA financing when you occupy one unit and the property meets program and appraisal requirements.
Read: Buying a Duplex in Northeast OhioCan I buy a fourplex and live in one unit?
Yes, and doing so generally allows owner occupied terms if you occupy within the required time frame and stay for the required period.
Read: Financing a Duplex, Triplex or FourplexTerms used in this guide
- Down Payment
- The portion of the purchase price you pay from your own funds or eligible gift funds rather than borrowing.
- Reserves
- Verified funds left after closing, usually measured in months of the housing payment. Requirements are higher for investment properties and some jumbo loans.
- Investment Property
- A property purchased to generate rental income or appreciation rather than to occupy. It generally requires a larger down payment and carries different pricing.
Written by
Manny Oloyede, Mortgage Broker
NMLS #1824463 | Ultimate Mortgage Brokers LLC NMLS #2619461 | Licensed in OH | KY | NC | PA | SC | TN | TX
I have worked in mortgage lending since 2018 out of the Akron / Cuyahoga Falls Branch, helping buyers, homeowners and investors across Northeast Ohio and every state where I am licensed. These guides reflect the questions I answer most often, written the way I would explain them on a call.
Keep reading
DSCR Loans Explained
How DSCR loans qualify a rental property on its own income instead of your tax returns, how the ratio is calculated and where investors run into trouble.
Real Estate InvestorsCan Rental Income Help Me Qualify for a Mortgage?
When lenders count rent from a current rental, a new purchase or a unit in a multifamily home, and what documentation they require.
Northeast Ohio HomebuyingBuying a Duplex in Northeast Ohio
How two to four unit financing works when you live in one unit, what lenders review, and what to check on older Akron, Canton and Cleveland doubles.
Real Estate InvestorsInvestment Property Mortgages in Northeast Ohio
Compare conventional investment loans, DSCR, fix and flip, and bank statement financing for rental and investment properties in Akron, Canton, and Northeast Ohio.
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