Conventional Investment 5% Down 2–4 Units

Looking to enter the world of real estate investing with a multi-unit property but want to keep your upfront costs low? The Conventional Investment Property loan program makes it possible to purchase a 2–4 unit property with as little as 5% down when it will be used as your primary residence. This program is an excellent option for buyers who want to live in one unit while renting out the others, creating a powerful blend of homeownership and income generation.

To qualify, borrowers generally need a minimum credit score of 620–680, depending on the lender, with stronger credit and stable income improving approval odds. Lenders also require a reasonable debt-to-income (DTI) ratio, and in many cases, 2–6 months of reserves may be requested to demonstrate financial stability. The good news is that with a down payment as low as 5%, gift funds are allowed, making it easier for first-time or repeat buyers to enter the market. Because the down payment is under 20%, private mortgage insurance (PMI) will be required, but PMI costs are often outweighed by the rental income potential of additional units.

This loan program offers a unique opportunity to own a multi-unit property, reduce your own housing costs, and build equity while creating passive rental income. By leveraging this option, you can establish yourself as both a homeowner and an investor with a minimal initial investment. To learn how this program can support your financial goals, watch our explainer video or click Schedule a Meeting to connect with one of our mortgage specialists for personalized guidance.