Quick answer
For eligible standard conventional purchases, plan on at least 15% down for a one-unit investment property and at least 25% down for a two-to-four-unit investment property. Freddie Mac Guide section 4203.1 lists those 85% and 75% maximum LTVs. Fannie Mae's occupancy guidance directs Fannie Mae files to its current Eligibility Matrix, which must be checked for the actual transaction.
They are maximum-agency LTVs, not approval promises. Credit, reserves, rental-income treatment, property type, appraisal, automated underwriting, pricing and lender requirements may require more cash or make a transaction ineligible.
The unit count changes the minimum equity
| Purchase property | Agency maximum LTV | Minimum down-payment equivalent | Critical qualification |
|---|---|---|---|
| One-unit investment property | 85% | 15% | Eligible purchase file; complete automated-underwriting, borrower and property requirements still apply. |
| Two-to-four-unit investment property | 75% | 25% | Each unit, property eligibility, rental-income documentation and underwriting must satisfy applicable rules. |
Down payment is not the same as cash to close
The down payment covers only the gap between the purchase price and base financing. Investors should separately plan for lender and third-party closing costs, prepaid taxes and insurance, initial escrow deposits if applicable, discount points, inspection and due-diligence costs, and any required reserves.
Funds used at closing
Down payment, lender charges, title and settlement charges, appraisal, taxes, insurance, points and other transaction items shown on the Loan Estimate.
Funds retained after closing
Required reserves are assets documented after accounting for closing. They are not counted twice as the down payment.
Gift funds and acceptable sources require special care
Freddie Mac's investment-property product page states that borrower funds for down payment or closing costs must not include gifts under its referenced rule. Do not assume that a source allowed on a primary-residence transaction is allowed for an investment property. Bank statements, transfers, sales proceeds, business funds and large deposits can require documentation.
Credit, reserves and rental income can change the practical result
The agency maximum LTV answers only one question. Freddie Mac also identifies an Accept automated-underwriting result, reserve rules, rental-income calculation, housing-expense ratios and multiple-financed-property requirements as part of investment-property eligibility.
- Credit and pricing: investment-property and LTV pricing adjustments may apply; the complete credit file matters.
- Reserves: requirements may increase with the subject property and other financed properties.
- Rental income: projected or existing rent must be documented and calculated under the applicable guide; gross rent is not automatically qualifying income dollar for dollar.
- Property type: condos, manufactured homes, mixed-use properties and project types can have additional restrictions.
- Appraisal and insurance: value, market rent, condition, insurability and Florida hazard coverage remain separate gates.
Florida costs to model before choosing the down payment
Wind, flood and homeowners insurance, property taxes, association dues, assessments, vacancy, maintenance and management can matter more than the difference between 15% and 20% down. A larger down payment may improve LTV and pricing, but it also reduces liquidity. Model both the closing requirement and post-closing operating cushion.
Continue with the investment-property reserve guide, Florida conventional requirements guide, and planning calculator.
A five-step investor check
- Confirm unit count and occupancy. A one-unit rental and a two-to-four-unit rental use different maximum LTVs.
- Estimate the lower-value scenario. Test cash needed if the appraisal is below the contract price.
- Separate cash categories. Down payment, costs, prepaids and reserves must each be funded and documented.
- Document rental income and all financed properties. Let the applicable agency calculation—not gross rent—drive qualification.
- Compare actual Loan Estimates. Review rate, points, credit fees, cash to close and the five-year cost using the same property and assumptions.
Authoritative sources
- Fannie Mae — occupancy types and current Eligibility Matrix reference
- Freddie Mac Guide §4203.1 — maximum LTV ratios
- Freddie Mac — investment-property mortgages
- CFPB — loan-to-value ratio and cost
- CFPB — choosing and comparing loan offers
Source scope: These sources support the adjacent statements. Current guides, automated-underwriting findings, lender overlays, appraisal, property and transaction documents control.
Frequently asked questions
What are the down payment requirements for a conventional loan on an investment property?
For eligible standard Freddie Mac purchase transactions, current Guide section 4203.1 shows maximum LTV of 85% for a one-unit investment property and 75% for a two-to-four-unit investment property. That corresponds to at least 15% and 25% down, respectively. Fannie Mae files must satisfy Fannie Mae's current Eligibility Matrix, and the actual file may require more based on underwriting, property, credit, reserves, pricing or lender requirements.
Can I buy a one-unit Florida investment property with 15% down?
Possibly. Current Freddie Mac Guide section 4203.1 allows up to 85% LTV for certain eligible one-unit investment-property purchases. Fannie Mae files must satisfy its current Eligibility Matrix. Approval still depends on the complete automated-underwriting result, credit, income, assets, reserves, property, appraisal and lender requirements.
Why do two-to-four-unit investment properties usually require 25% down?
Current Freddie Mac Guide section 4203.1 caps eligible two-to-four-unit investment-property purchase LTV at 75%. A 75% maximum LTV means at least 25% equity from the buyer before considering closing costs and other required funds. Fannie Mae files must satisfy Fannie Mae's current Eligibility Matrix.
Can gift funds cover an investment-property down payment?
Do not assume so. Freddie Mac's investment-property product page says borrower funds for down payment or closing costs must not include gifts under its referenced rule. The applicable agency, lender and transaction documents control the acceptable source of funds.
Are reserves included in the down payment?
No. Down payment, closing costs, prepaid items and post-closing reserves are separate categories. Investment-property underwriting may require reserves based on the subject property, other financed properties and the complete file.
Does projected rent reduce the required down payment?
Not by itself. Eligible rental income may affect qualification when documented and calculated under applicable rules, but it does not change the agency's maximum LTV for the property type. The appraisal, lease or market-rent evidence and underwriting result control.
Review an actual Florida investment-property file
Use the official application for a complete mortgage request or schedule a call to discuss property type, funds, reserves and rental-income documentation. Neither action guarantees eligibility, approval, a rate, savings, a payment, property acceptance or closing timing.
Important disclosure: Educational information only; not investment, tax or legal advice, a commitment to lend, rate quote or approval. All loans are subject to application, credit, property, underwriting and program requirements. Rates and programs may change. Joseph Pistone, NMLS 2087918. CrossCountry Mortgage, LLC, NMLS 3029. Equal Housing Opportunity. Not affiliated with or endorsed by Fannie Mae, Freddie Mac or CFPB.