What is the minimum down payment typically required to purchase an investment or rental property?
The down payment requirement can vary depending upon how tight money is in the economy at the time you are purchasing and can also vary amongst lenders. For example, lenders who underwrite their loans to meet Fannie Mae’s and Freddie Mac’s guidelines may require a 20-30% down payment (although there have been times when they required as little as 10% down). But portfolio lenders (i.e. banks & savings banks) may have looser down payment restrictions. Check with your loan coordinator, but the typical down payment required to receive the best non-owner occupied rate would be 20-30%.
