Yes — using conventional underwriting (not a DSCR loan), qualified borrowers can buy an investment property in Charlotte with as little as 10% down. You qualify on your documented income, and the loan allows closing in an LLC. It generally requires a 740+ credit score and standard conventional debt-to-income limits up to 50%. On a $350,000 property, that’s $35,000 down instead of $87,500 — over $50,000 kept in your pocket.
- Qualified Charlotte investors can buy investment property with 10% down using conventional financing — not a DSCR loan.
- You qualify on documented personal income, which typically means better pricing than a DSCR loan.
- This product allows closing in an LLC — unusual for conventional financing.
- Best for strong-file borrowers: 740+ credit, documented income, DTI up to 50%.
For most of the past decade, buying an investment property has meant putting 20 to 25 percent down. That capital requirement is the single most common reason strong investors stay on the sidelines — not because they can’t qualify, but because the down payment ties up cash that could be working across multiple deals.
There is now a conventional financing option that allows investment property purchases in Charlotte with as little as 10 percent down. It is not a DSCR loan, and it allows closing in an LLC. This guide explains exactly how it works, who qualifies, and the math that makes it worth understanding. To see how it fits alongside other options, you can also review our Charlotte investment property loan programs.
Can You Really Buy an Investment Property With 10% Down?
Yes. Through conventional underwriting, qualified borrowers can purchase a single-family rental, a short-term rental, or a small investment property with a 10 percent down payment. The key distinction is that you qualify based on your documented personal income — the same way you would qualify for a primary residence — rather than on the property’s projected rental income.
This matters because conventional underwriting generally produces more favorable pricing than the alternatives for borrowers who can document their income. It rewards a strong financial profile rather than charging a premium for a property-based qualification.
How It Differs From a DSCR Loan
DSCR (Debt Service Coverage Ratio) loans have become popular with real estate investors, and for good reason — they let you qualify based on the property’s rental income rather than your personal income, which is valuable for self-employed investors or those with complex tax returns. You can read more about how those work on our Charlotte DSCR loans page.
But DSCR loans come with tradeoffs: they typically require 20 to 25 percent down and often carry higher rates and fees than conventional financing. This 10-percent-down product is the opposite approach. It uses conventional underwriting, so you qualify on your income — and in exchange you get a lower down payment and generally better pricing. For an investor who can document strong income, that combination is often the more efficient path.
Closing in an LLC
Here is the feature experienced investors tend to focus on first: this product allows you to close in an LLC.
Most conventional financing requires the property to close in your personal name. For investors who hold property in an LLC — for liability protection, partnership structure, or estate planning — that requirement has historically forced a choice between favorable conventional terms and the entity structure they want. This product removes that tradeoff, letting you keep your preferred structure while still accessing conventional pricing and the 10-percent down payment.
Who Qualifies (Credit and DTI)
This product is designed for strong-file borrowers. The general guidelines:
- Credit score: Generally 740 to 760, depending on how many financed properties you already own. The more properties in your portfolio, the higher the credit expectation.
- Debt-to-income (DTI): Standard conventional limits, up to 50 percent maximum.
- Income documentation: Standard conventional documentation — you qualify on your verifiable income.
- Property types: Works for single-family rentals, short-term rentals, and similar small investment properties.
If your credit and income are strong and the down payment has been the main thing holding you back, this is likely a fit. If you are self-employed with income that is difficult to document, a DSCR loan may still be the better route.
The Math: 25% Down vs. 10% Down
The capital efficiency is the whole point. Here is how the down payment compares across a few common Charlotte-area investment price points.
| Purchase Price | 25% Down (Typical) | 10% Down (This Product) | Capital Kept |
|---|---|---|---|
| $250,000 | $62,500 | $25,000 | $37,500 |
| $350,000 | $87,500 | $35,000 | $52,500 |
| $450,000 | $112,500 | $45,000 | $67,500 |
On a $350,000 property, the difference between 25 percent and 10 percent down is $52,500. That is capital you can hold as reserves, use to furnish and set up a short-term rental, or deploy toward the down payment on an additional property. For an investor focused on growing a portfolio, the ability to acquire more with the same capital is often more valuable than the marginally lower monthly payment that a larger down payment provides.
When This Makes Sense (and When It Doesn’t)
When 10% down is the right move
This product fits best when you have strong credit and documentable income, when you want to preserve capital to keep acquiring properties, and when you want to hold the property in an LLC. If down payment — not qualification — has been the thing keeping you from your next purchase, this changes the math in your favor.
When another option may be better
A larger down payment lowers your monthly payment and improves cash flow, so if maximizing monthly cash flow on a single property is your priority, putting more down may suit you better. And if your income is difficult to document — common for some self-employed investors — a DSCR loan that qualifies on the property’s rent may be the more practical route, even with the higher down payment.
The right structure depends on your portfolio, your income profile, and your growth strategy. That’s a conversation worth having before you write your next offer.
Run the Numbers on Your Next Property
I’ll show you how the 10%-down option pencils on a specific property — including LLC structure and how it compares to a DSCR loan. Straight numbers, no pressure.
📞 330-977-0017 · Charlotte, NC · NMLS #1410557 · 520+ verified 5-star reviews
Frequently Asked Questions
Can you really buy an investment property with 10% down?
Yes. Using conventional underwriting, qualified borrowers can purchase an investment property in Charlotte with as little as 10% down. This is not a DSCR loan — you qualify on your documented income rather than the property’s projected rent. It generally requires a 740+ credit score and standard conventional debt-to-income limits.
How is this different from a DSCR loan?
A DSCR loan qualifies you based on the property’s rental income, not your personal income, and usually requires 20-25% down. This 10%-down product uses conventional underwriting — you qualify on your documented income, which typically means better pricing than DSCR for borrowers who can document earnings.
Can I close in an LLC with this loan?
Yes. This product allows closing in an LLC, which is unusual for conventional financing. Many investors hold property in an LLC for liability protection and portfolio structure, and conventional loans typically don’t allow it — this one does.
What credit score do I need to buy an investment property with 10% down?
Generally a credit score of 740 to 760 depending on how many financed properties you already own, along with standard conventional debt-to-income limits up to 50%. It is designed for strong-file borrowers with documented income.
How much do you save with 10% down versus 25% down?
On a $350,000 investment property, 25% down is $87,500 while 10% down is $35,000 — a difference of $52,500 in upfront capital that can be redeployed toward reserves, setup costs, or another property.
Trevor specializes in investor financing across the Charlotte metro — DSCR, conventional, low-down-payment, PadSplit, and short-term rental loans. 12+ years lending, 520+ verified 5-star reviews. He runs the real numbers honestly, before you write an offer. Learn more →
Disclosure: This article is for educational purposes and does not constitute financial or legal advice specific to your situation. Loan programs, qualification guidelines, rates, and terms are illustrative, subject to change, and vary by borrower and property. All loans are subject to credit approval and underwriting. Down payment, credit, and DTI requirements shown are general guidelines and not a commitment to lend. Examples are illustrative only and do not represent an offer or guarantee of specific terms. Contact a licensed mortgage professional for advice specific to your situation. Trevor Higgins · Fairway Independent Mortgage Corporation · NMLS #1410557 · Company NMLS #2289 · Equal Housing Lender · Licensed in NC, SC, FL, OH, TX.
