Short answer: For conventional (conforming) investment-property loans, lenders generally require a larger down payment than owner‑occupied loans — typically about 15% minimum for a 1‑unit investment and about 25% minimum for 2–4 unit investment properties.

Details and caveats:
- Typical minimums:
- 1‑unit investment property: often around 15% down (but some lenders or borrower profiles will require 20%+).
- 2–4 unit investment property: commonly around 25% down.
- What can push the required down payment higher:
- Lower credit score (many lenders ask for stronger credit for lower down payments).
- Limited cash reserves (lenders usually want several months of reserves for investment loans).
- High debt-to-income ratio.
- Multiple financed properties already on your credit report.
- Property type (condos, small multifamily, non-warrantable condos, or unusual property uses can require larger down payments).
- Borrower history (recent bankruptcies, foreclosures, or short credit history).
- Other important notes:
- Loan program overlays differ by lender — some will allow 15% for 1‑unit only for very strong files; others require 20% or 25% across the board.
- Qualifying rules and documentation (rental income, leases, reserves) are stricter for investments than owner‑occupied homes.
- Credit score bands commonly seen: conventional investment loans often favor mid‑600s or higher; lower scores typically trigger higher down payment requirements.

Next step: talk with a loan officer with your specific credit score, assets, number of financed properties and the property type so they can quote program options and exact minimums you may qualify for.

The minimum down payment for a conventional investment property loan is **15% for single-unit properties (1-unit)**, and this increases significantly as you add more units.

## Down Payment Requirements by Property Type

**Single-Family Rental (1 unit):**
- Minimum 15% down payment
- Typically requires a credit score of 620-640 or higher
- Strong financial reserves usually needed (6+ months)

**Multi-Unit Investment Properties:**
- **2-4 units:** Minimum 25% down payment
- The jump from 15% to 25% reflects the higher risk lenders perceive with multi-family investments

## Why the Difference Exists

Lenders view multi-unit properties as carrying more risk because:
- More complex property management requirements
- Higher potential for vacancy issues affecting multiple units
- Greater maintenance costs and complications
- More variables that could impact your ability to repay

## Important Considerations

**Credit score impact:** While minimum scores may start around 620-640, better pricing and terms typically require scores of 680 or higher.

**Reserve requirements:** Investment properties generally require 6-12 months of mortgage reserves (principal, interest, taxes, insurance), and this requirement often increases with more units.

**Portfolio loans:** If you already own multiple investment properties, some lenders may require 20-25% down even on single-family rentals due to portfolio risk.

**Cash-out refinances:** If you're refinancing an existing investment property and taking cash out, you may need to maintain at least 25% equity regardless of unit count.

The down payment is just one piece of qualifying. Lenders also evaluate your debt-to-income ratio, credit profile, property cash flow potential, and overall financial strength when approving investment property loans.

The minimum down payment for a conventional investment property loan is 15% for a single-unit property and 25% for a multi-unit property. Yes, the required down payment increases based on the number of units you are financing.

Conventional loans, which are backed by Fannie Mae and Freddie Mac, have specific guidelines for investment properties that are stricter than those for primary residences. Lenders view investment properties as having a higher risk, so they require more "skin in the game" from the borrower.

Here is a breakdown of the typical minimum down payments by property type:

* **Single-Family Residence (1 unit):** 15% minimum down payment. This applies to detached homes, townhouses, and condos.
* **2-4 Unit Properties:** 25% minimum down payment. This applies to duplexes, triplexes, and four-plexes.

It's important to note that these are the absolute minimums. Putting down more than the minimum can often result in more favorable loan terms. Lenders use a system of risk-based pricing, and a larger down payment (which means a lower loan-to-value ratio) is seen as less risky.

Beyond the down payment, you should also be prepared for two other key financial requirements:

* **Credit Score:** While the minimum down payment is 15% for a single-unit home, qualifying for it often requires a strong credit score, typically above 700. Lenders may require a larger down payment for borrowers with lower credit scores.
* **Cash Reserves:** Lenders will verify that you have sufficient cash reserves left over after closing. This is to ensure you can cover the mortgage payments (including principal, interest, taxes, and insurance) during potential vacancies. You will generally need to show proof of at least six months' worth of PITI payments in a liquid account for each investment property you own.