Investor down payment requirements for real estate hinge on property type and loan program—conventional investment loans demand 15-25% down, FHA allows 3.5% on 1-4 units with owner-occupancy, while portfolio lenders flex to 20-30% for Denver flips amid Colorado housing market balance. With 15+ years in Denver real estate and thousands of transactions, I’ve structured financing for clients scaling Littleton real estate rentals and Highlands Ranch portfolios, navigating reserves and DTI rules transparently.
Conventional Loans Breakdown
Fannie Mae/Freddie Mac set the standard: 15% minimum on single-unit investments, scaling to 25% for 4-plexes. Lenders layer 6-12 months’ reserves (principal, taxes, insurance, HOA). Debt-to-income caps at 45%; self-employed need two years’ schedules. In Colorado’s 3-4 month inventory, these lock in rates before 2026 forecasts of modest price softening.
FHA and VA Investor Options
FHA multi-family (5+ units) requires 3.5% owner-occupy down, but house-hack strategies suit beginners—live in one unit, rent others. VA loans bar pure investments yet permit 4-unit purchases with no down if eligible. Local credit unions in Denver real estate offer DSCR loans (debt service coverage ratio) at 20% down, focusing on rental income over personal DTI.
Portfolio and Creative Financing
Non-QM portfolio lenders accept 10-20% down for fix-and-flips, valuing ARV over current value—ideal for Highlands Ranch real estate rehabs. Private money runs 30-40% down at 10-12% interest short-term. Seller financing skips banks entirely: 20-30% down, 5-7% amortized over 5-10 years.
Requirements Comparison Table
Denver-Specific Strategies
Colorado’s metro growth favors multi-units near DTC; target Littleton real estate triplexes under $800K for 20% down feasibility. HOAs in Highlands Ranch real estate add $300-500/month—factor into PITI. Build reserves via HELOCs on primary homes. Time purchases for 2026’s predicted sales uptick and slight rate relief, per local trends.
From experience, stack LLCs for liability; audit cash flow pre-purchase. Many clients start small, scaling into friendships over shared successes.
If you’d like honest guidance, market insight, or a no-pressure conversation about down payments and your investor situation, reach out—I’m here. Visit www.MileHighHomeGroup.net to search properties, explore Denver, learn more about me and connect.
Mile High Home Group - Welcome to Denver 
Leave a comment