Who Told You, You Need A 20% Down Payment To Buy Your First Investment Property?

Edgar DeJesus • March 5, 2021

Today I want to share with you a recent conversation I had with a family member.

 

My family member shared with me they wanted to buy their first investment property. 

They then asked me what is the minimum down payment required to buy an investment property?

 

My response was you need a 20% down payment.

 

On the 350k home they were looking at, that’s a 70k down payment without the closing costs.

 

I then started thinking many of our clients probably would like to buy an investment home in order to build their retirement nest egg.

However saving up a 20% down payment is not always easy. 

 

Here’s an idea you can implement.

 

What if you’re currently renting and you buy your first home. This requires between 3%-5% down payment plus your closing costs. Then you live in the home for 5 years always making on time mortgage Payments.

 

After 5 years you look to buy a new primary home which requires just another 5% down payment plus closing costs.

 

The existing home becomes your investment property and the new home purchase your primary.

 

In 5 years you were able to buy a primary and an investment with only 10% down payment between the two purchases. 

 

Of course you have to qualify for the second purchase but it’s a lot easier to save up 10% then 20%.

 

If you found this information to be helpful or if you have any questions my contact information is below. I would love helping you with purchasing your first home as well as your first investment property.

 

My name is Edgar DeJesus, I’m a licensed and local mortgage broker and branch manager for Treasure Coast Home Loans.

 

 

Please feel free to share this video.

 

Thank you for taking the time to watch this video and make it a great day.


CONTACT US

Call or text 561-223-9347 or email edgar@treasurecoasthomeloans.com to discuss your loan. 


Loan approval is not guaranteed and is subject to lender review of information. All loan approvals are conditional and all conditions must be met by the borrower(s). A loan is only approved when the lender has issued approval in writing and is subject to all lender conditions. Any specified rates and terms are contingent upon loan approval and are subject to change without notice due to unpredictable market conditions. Innovative Mortgage Services, Inc. is a Florida licensed lender. Company NMLS #250769. Originator NMLS # 230414. Florida Mortgage Lender License, License/Registration #: MLD178 Florida. Mortgage Lender Servicer License, License/Registration #: MLD2167 Equal. Equal Housing Lender 

⚡ 7-Minute Pre-Approval

Start Your Mortgage Application

Ready to make your move? Apply securely with Treasure Coast Home Loans, your local mortgage broker. We make the process fast, simple, and transparent so you can shop for your new home with absolute confidence.

Free Search Tool

Unlock Down Payment Assistance

Did you know there are hundreds of state and local programs designed to help Florida buyers cover their down payment and closing costs? You could qualify for thousands of dollars in assistance. Answer a few quick questions to see exactly what programs you are eligible for right now.

Mortgage Broker Port St. Lucie, Florida

Learn More About the Mortgage Process.


Check Out Our Google Verified Reviews

Comprador en Florida observando tasas hipotecarias y precios de viviendas.
By Edgar DeJesus August 27, 2026
¿Bajarán las tasas hipotecarias? Conoce qué mueve las tasas y qué deben considerar los compradores en Florida antes de esperar.
Florida buyer watching mortgage rates and home prices.
By Edgar DeJesus August 27, 2026
Will mortgage rates fall? Learn what moves rates and what Florida home buyers should consider before waiting to buy.
Florida buyer covering an appraisal gap.
By Edgar DeJesus August 26, 2026
Offering above a Florida home’s appraised value? Learn why having cash for the appraisal gap doesn’t automatically guarantee DU approval.
Comprador en Florida cubriendo diferencia de tasación.
By Edgar DeJesus August 26, 2026
¿Ofreciste más que el valor de tasación? Tener el dinero para cubrir la diferencia no garantiza automáticamente la aprobación de DU.
Comprador en Florida revisando fondos para el cierre.
By Edgar DeJesus August 25, 2026
Tener dinero en el banco no significa que todo pueda usarse inmediatamente. Conoce cómo funcionan los fondos para cerrar una hipoteca en Florida.
Florida home buyer reviewing cash to close.
By Edgar DeJesus August 25, 2026
Money in the bank isn’t always immediately usable for a mortgage. Learn what Florida buyers should know about cash to close.
Florida buyer reviewing home price and mortgage pre-approval.
By Edgar DeJesus August 24, 2026
Pre-approved for $500,000? Learn why every $500,000 Florida home may not produce the same mortgage qualification.
Comprador en Florida revisando precio y preaprobación hipotecaria.
By Edgar DeJesus August 24, 2026
¿Preaprobado por $500,000? Descubre por qué no todas las casas de $500,000 en Florida califican igual.
Comprador de condominio en Florida revisando elegibilidad hipotecaria.
By Edgar DeJesus August 18, 2026
Puedes calificar para la hipoteca aunque el condominio no. Conoce lo que compradores y vendedores de Florida deben revisar.
Florida condo buyer reviewing mortgage eligibility.
By Edgar DeJesus August 18, 2026
You may qualify for a mortgage while the Florida condo does not. Learn what buyers and sellers should check before closing.