How to Finance Real Estate With Little or No Money Down

Conventional and DSCR loans want 15–25% down, so "no money down" almost always means using someone else’s equity or capital. Here are the real low- and no-down paths — with their trade-offs.

Your financing options

Best fit

Conventional Investment Property Loans

Traditional Fannie Mae/Freddie Mac-backed mortgages for investment properties. The lowest rates available for investors, but require personal income qualification and are limited to 10 financed properties.

86%
fit
Rate
6.0%–7.5%
LTV
75%–80%
Term
15 or 30-year fixed
Min credit
680–720
  • Built for long-term holds

DSCR Loans

DSCR (Debt Service Coverage Ratio) loans qualify based on the property's rental income, not your personal income or W-2s. The most popular loan product for buy-and-hold real estate investors scaling a rental portfolio.

84%
fit
Rate
6.5%–8.5%
LTV
75%–80%
Term
30-year fixed or 5/6 ARM
Min credit
620–680
  • Built for long-term holds

Portfolio Loans

Portfolio loans are held by the originating bank (not sold to Fannie/Freddie), giving lenders flexibility on guidelines. Ideal for investors with 5+ properties who need blanket financing or flexible underwriting.

60%
fit
Rate
7.0%–9.0%
LTV
70%–80%
Term
5–30 years (balloon or fully amortizing)
Min credit
650–700
  • Built for long-term holds

Lenders to start with

Bank Statement Loans

Non-QM loans that use 12–24 months of bank statements instead of tax returns to verify income. Designed for self-employed investors and business owners whose tax returns understate their actual income.

60%
fit
Rate
7.0%–9.5%
LTV
75%–80%
Term
30-year fixed or ARM
Min credit
660–700
  • Built for long-term holds

Also worth considering

HELOC / cash-out on equity you already hold

Tap equity in a property you own to fund the down payment on this one — often cheaper than a partner or hard money.

When it fits: You have equity in another property and are short on cash for this deal.

Open the calculator →

Seller financing

The seller acts as the bank. No institutional qualifying, and the terms are negotiable.

When it fits: Your credit or income docs are a hurdle, or you want creative terms.

Learn more →

Subject-to (take over the existing loan)

Acquire the property and keep the seller’s existing mortgage in place. Powerful, but watch the due-on-sale clause.

When it fits: Low cash and a motivated seller with an assumable-in-practice low-rate loan.

Learn more →

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Use equity you already have

The most common "no money down" move is funding the down payment with equity from a property you already own — a HELOC or cash-out refinance. You are still putting money down; it just is not fresh cash out of pocket. Run the numbers on the equity-unlock calculator to see how far it stretches.

Live in it, or get creative

If you are willing to live in the property for a year, owner-occupied house-hacking with FHA (3.5% down) or VA (0% down) financing is the lowest-cost low-down path there is — buy a 2–4 unit, live in one, rent the rest.

Beyond that, the no-down toolkit is creative finance: seller financing (the seller acts as the bank), subject-to (you take over the existing mortgage — mind the due-on-sale clause), and partnerships where you bring the deal and the work while a partner brings the capital. These trade simplicity for flexibility and carry real legal nuance, so go in with eyes open.

Frequently asked questions

Can you really buy an investment property with no money down?

Rarely with zero dollars in play — but you can buy with none of your own fresh cash by using equity from another property, owner-occupied low-down loans, seller financing, subject-to, or a capital partner. Each shifts the cost or risk somewhere else rather than eliminating it.

What is the easiest low-money-down option for a first deal?

House-hacking is usually the most accessible: owner-occupied FHA or VA financing lets you buy a 2–4 unit with as little as 0–3.5% down, live in one unit, and rent the others to offset the mortgage.

More financing scenarios