Ask about the actual property
A non-owner-occupied rental is not automatically eligible for the same low-down-payment options as a principal residence. Unit count, lender, insurer and property use matter. Ask for a written requirement and whether legal secondary units or owner occupancy change the analysis.
Borrowed equity is another obligation
Using a HELOC or refinance to fund a purchase creates costs and debt on the source property. Include the new payment in your household budget and disclose the source to the lender. A transfer from equity is not free capital, and property values can fall.
Retain enough cash to operate
Budget for closing, a vacant month, repairs and lender reserves. Compare a larger down payment with the liquidity left after closing. A smaller loan can improve monthly cash flow while leaving too little cash to respond to an unexpected expense.
A question worth asking
Can I assume the homebuyer minimum applies to every rental?
No. Verify the actual property and lender or insurer requirements.
Check the source
Primary references checked October 28, 2026. Rules and product availability can change; confirm the requirements for your actual transaction.