Financing & LoansQuestion 14
How Much Down Payment for a Houston Rental Property?
Investment properties typically require 20%–25% down for conventional loans, though DSCR loans may accept 15%–20% and FHA house-hacks can go as low as 3.5%.
Down payment requirements vary significantly by loan type and strategy. Here's what to expect in the Houston market.
- Conventional (non-owner-occupied): 20% for single-family, 25% for 2–4 units. Best rates at 25% down.
- DSCR loans: 15%–25% depending on credit score and DSCR ratio. 20% is most common.
- FHA house-hack: 3.5% down on a 2–4 unit property you'll live in. Powerful strategy for first-time Houston investors.
- VA loan house-hack: 0% down for eligible veterans on owner-occupied multi-unit properties.
- Hard money: 10%–30% down plus renovation costs. Designed for flips and BRRRR projects.
- Seller financing: Negotiable — some Houston sellers accept 5%–10% down with creative terms.
Bottom Line
For a $250,000 Houston rental, expect to bring $50,000–$62,500 for a standard investment property purchase. House-hacking with FHA can drop that to under $10,000, making it the best entry point for new investors.