Smaller local banks or credit unions often keep loans on their own books (portfolio loans). This allows them to offer 10% down terms for well-qualified investors with high credit scores (720+) and significant cash reserves.
These loans qualify you based on the property’s rental income rather than your personal income. While 20% down is the industry standard, some niche DSCR programs allow 10% to 15% down if the property's cash flow is exceptionally strong (often a 1.20 DSCR or higher). 3. Creative Financing Strategies buying investment property with 10 percent down
If traditional lenders won't budge on the 20% rule, investors use "stacking" to reach the 10% out-of-pocket goal. Smaller local banks or credit unions often keep