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Investment Property Guide

Investment Property Down Payment and Reserves

Rentals need more down and more cash in reserve than a home you live in. Here's the honest picture on both paths, conventional and DSCR, and why I verify the real numbers for your file instead of quoting a one-size figure.

By Niko Kramer, Mortgage Loan Officer, Satori Mortgage, NMLS #2180891

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The short answer

Investment properties need a larger down payment and more reserves than a primary residence. On conventional financing the down payment commonly runs about 15% to 25% depending on units (a Fannie Mae and Freddie Mac rule), with several months of reserves. On a DSCR loan, the down payment and reserves are investor overlays that vary by program. I verify the real numbers for your file. Subject to credit and property approval.

How much down payment do you need for an investment property?

More than for a home you live in, because lenders treat rentals as higher risk. On conventional financing the down payment commonly runs about 15% to 25% depending on the number of units, with more units generally meaning more down. On a DSCR loan the down payment is set by the wholesale investor and varies.

The exact conventional down-payment-by-units figures are a Fannie Mae and Freddie Mac rule covered on my conventional loan guide, so I link them rather than repeat them: see the conventional investment property guide. For DSCR, I store the down payment as "varies / verify" and confirm Satori's current program against your deal. Either way, I'll give you a realistic figure for your file instead of a number that may not apply.

How many months of reserves do investors need?

Expect more reserves than for a primary residence. Reserves are measured in months of the new full payment (PITIA), and lenders want to see you could carry the property for a while if a unit sits empty. The more properties you finance, the more reserves a lender tends to want.

On conventional financing the exact reserve months are a Fannie Mae and Freddie Mac rule covered on my conventional loan guide; on a DSCR loan they are a wholesale investor overlay. In both cases I verify the requirement for your scenario rather than print a universal number, because it shifts with the program, the property, and how many financed properties you already have. The financed-property side gets its own financed property limits guide.

Down payment and reserves by path

The quick version: conventional figures are GSE rules I link; DSCR figures are investor overlays I verify. Here's the side-by-side so you can see which lever moves on each path.

Requirement Conventional investment loan DSCR loan
Down payment Commonly about 15-25% by units (read the figure from the conventional guide) Investor overlay; varies, verify with Niko
Reserves More than a primary residence; exact months are a GSE rule (linked) Investor overlay; varies, verify with Niko
Who sets it Fannie Mae / Freddie Mac (covered on my conventional loan guide) The wholesale investor (varies by program)
What raises it More units, more financed properties, weaker credit Lower DSCR, more financed properties, the investor's overlay
General comparison as of 2026, educational, not an offer or a quote. Conventional down-payment and reserve figures are covered on my conventional loan guide and read from its guide. DSCR figures are investor overlays; confirm your file's terms with Niko.

Down payment and reserves FAQ

More than for a primary residence. On conventional financing the down payment commonly runs about 15% to 25% depending on the number of units, set by the Fannie Mae and Freddie Mac rules. On a DSCR loan the down payment is a wholesale investor overlay that varies by program. I confirm the real figure for your file rather than quote a one-size number.

Investment properties typically require more cash reserves than a primary residence, measured in months of the new payment (PITIA). On conventional financing the exact months are a Fannie Mae and Freddie Mac rule; on a DSCR loan they are an investor overlay. Both can also rise with more financed properties. I verify the reserve requirement for your scenario instead of stating a universal number.

Keep going: the DSCR loan guide, financed property limits, and the investment property hub.

Want your real down payment and reserve numbers?

Talk it through with Niko Kramer, Mortgage Loan Officer at Satori Mortgage. I'll give you realistic down payment and reserve figures for your file, conventional or DSCR, and match you to the right program across 100+ lenders. Straight answers, no return promises.

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Sources

  • Fannie Mae Selling Guide and the Freddie Mac Seller/Servicer Guide (conventional investment down payment and reserves, covered on my conventional loan guide)
  • DSCR down payment and reserve requirements come from Satori's wholesale investors and are verified per file; they are not a single public figure

Last updated: June 12, 2026

Important investment-property lending disclosures

  • All loans are subject to credit and property approval. Not all applicants or properties will qualify. This is not a commitment to lend.
  • Investment-property financing terms, including down payment, reserves, and rate, differ from owner-occupied financing and are typically higher cost. Not all products are available for all properties.
  • DSCR and other non-QM programs may qualify a borrower based on the property's cash flow rather than personal income. They are not government or GSE (Fannie Mae or Freddie Mac) loans, and their terms are set by the investor and vary by program.
  • This is mortgage information, not investment, tax, or legal advice. There is no guarantee of rental income, occupancy, cash flow, appreciation, or return. Investment-property loans may be business-purpose loans subject to different rules than consumer mortgages; whether a specific loan is business-purpose is determined per loan.
  • Niko Kramer, Mortgage Loan Officer, Satori Mortgage, NMLS #2180891. Equal Housing Opportunity. See the footer for company licensing and full disclosures.

This page is educational and not an offer to lend or a commitment to make a loan. It is mortgage information, not investment, tax, or legal advice, and is not a promise of rental income, occupancy, cash flow, appreciation, or return. Not all applicants or properties will qualify. Rates, programs, and guidelines may change without notice. All loans are subject to credit and property approval.

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60 seconds. No credit pull. Down payment and reserves for your deal.

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