Financing
Down Payment %
Share of the purchase price you pay in cash. Required investment-property down payment varies by occupancy, borrower, property, lender, and loan program.
Example
On a $400,000 property at 25% down, you bring $100,000 to closing (before closing costs).
Why Down Payment % matters
Down payment is the inverse of LTV and a major driver of leverage and liquidity. Compare written loan quotes and stress-test reserves instead of treating a percentage range as a universal sweet spot.
How to check Down Payment % before you rely on it
Get the required percentage from a written loan quote for the specific program and property type, not from a rule of thumb, and confirm how much of it must be your own funds rather than a gift or a second loan. Add closing costs and the lender's reserve requirement to the cash you need at closing. Then check that the cash-on-cash return still meets your target at the real down payment; a larger down payment lowers the loan but also lowers the return on every dollar you put in.
Related terms
LTV (Loan-to-Value)
Loan amount divided by the lender's eligible value basis. Investment-property cash-out limits vary b…
Cash-on-Cash Return
Annual cash flow ÷ total cash invested (down payment + closing + rehab). Tells you how hard your mon…
Closing Costs
Lender fees, title, escrow, insurance prepay, etc. Typically 2-4% of purchase price for investment p…
Ready to run the Down Payment % math on a real deal?
Free 60-second analysis with labeled starting assumptions and no signup. Pro calculates your Offer Ceiling: the highest price that still meets your targets under the assumptions shown.
Where Down Payment % shows up in TrueCap
Financing inputs sit in the analyzer's financing section: the rate can start from FRED's national 30-year benchmark and every term is editable. They drive the monthly payment, DSCR, and cash flow after reserves, so a change here moves the verdict and the Offer Ceiling; the results view names the financing assumptions most likely to change the decision.