CalculateRealEstateROI

Financing

Down Payment

Cash paid upfront, representing the borrower's equity at purchase.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

More down = lower payment, lower risk, better rate. Investor loans usually require 20-25%.

Examples

  • 20% down on $300k = $60k.
  • FHA owner-occ: 3.5%; investor: 20-25%.

Common mistakes

  • Stretching the down payment and leaving no reserves.

Related questions