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Posts: 1
Registered: ‎11-07-2012

Down payment for second home for rental

We're planning on purchasing a second home as a rental property.

Is there a down payment requirement for this?

What other requirements are there?

Are there prefered credit scores?


Platinum Super Contributor
Posts: 11,327
Registered: ‎05-30-2009

Re: Down payment for second home for rental

Rental property usually requires a minimum of 20% down and sometimes a lot more.  If the home is not a current rental the lender might not consider potential rental income as an offset to the mortgage for the DTI ratio.  


Best to talk to a few lenders who can answer your questions and pre-qualify you based on your situation.

Redfin Agent
Posts: 58
Registered: ‎10-23-2012

Re: Down payment for second home for rental

Hi Gaberi,


The previous post is correct that down payments vary considerably depending on your personal financial situation and the property is question.  Though, generally down payments on investment properties range from 20-50%.  Most lenders that I have interacted with will use 75% of the gross rental income being generated by the subject property when determining your financing options/rates/amount.


It is best to contact a few mortgage brokers to determine what options are available to you.  Redfin has an

Open Book, which is a local reviews site for service providers like lenders and inspectors. We publish every review – the good, the bad and the ugly. Look for the Redfin Recommended logo to find providers with the best customer reviews and Agent feedback – these providers have signed our Customer Pledge. No one we include or recommend pays a dime to Redfin or our Agents.


You can see the Lenders for Souther California here


Jordan Clarke

San Diego Redfin Community Ambassador

Jordan Clarke | Redfin San Diego Agent
See all my Deals and Reviews