Here's the reality: 90% LTV financing does exist for investment properties. It's not the norm, and it's not available from every lender, but qualified borrowers can access it through the right combination of lender type and loan structure. High down payments tie up capital that could otherwise fund a second or third property.
This guide breaks down how 90% LTV investment property loans actually work, who typically qualifies, and what structures make them possible. We'll also cover how a funding specialist can help you find the right lender fit.
Key Takeaways
- 90% LTV investment property loans exist, but they’re less common than standard 75–85% programs
- Strong credit, low DTI, and solid cash reserves are non-negotiable for high-leverage approval
- Piggyback loans, co-borrowers, and portfolio lenders are the main paths to 90% LTV
- A funding specialist can match your profile to lenders most likely to approve 90% LTV
What Is LTV and Why Does It Matter for Investment Properties?
Loan-to-value (LTV) is simple math: loan amount divided by the property's appraised value or purchase price, whichever is lower. A $180,000 loan on a $200,000 property equals 90% LTV.
Investment properties almost always carry lower maximum LTVs than primary residences. Lenders see rental properties as riskier: no owner is living there to protect the investment, and rental income can disappear during a vacancy.
According to Freddie Mac's underwriting guidelines, standard maximum LTVs are 85% for a 1-unit investment property and 75% for a 2- to 4-unit investment property on purchase transactions, compared to 80% and 75% for primary residences of the same size. That gap exists for a reason: lenders price risk into their leverage limits.
Specialized investment property loans can still reach 90% LTV, above those conventional caps. What that means in practice:
- Only a 10% down payment is required instead of the typical 15-25%
- More of your capital stays free for other deals or reserves
- Higher leverage raises lender risk, so expect pricing adjustments, possible mortgage insurance, and tighter underwriting
Is a 90% LTV Investment Property Loan Actually Possible?
Yes, but it's the exception, not the rule. A true 90% first-lien LTV on an investment property sits above what Fannie Mae and Freddie Mac typically allow on standard purchase loans. Reaching that level usually means non-agency financing or a combined structure.
Which Lenders Offer It
Conventional agency-backed loans (the kind sold to Fannie Mae or Freddie Mac) generally cap out around 85% for single-unit investment properties. To get closer to 90%, investors typically look toward:
- Portfolio lenders that keep loans in-house and set their own risk limits
- Credit unions with member-focused investment property programs
- Non-agency or fintech lenders that underwrite outside standard agency guidelines
What Qualification Typically Looks Like
Those channels can stretch LTV, but they still underwrite risk tightly. Expect standards like these:
- Credit score: Mid-600s to high-700s is common; Fannie Mae’s conventional floor is 620, but high-LTV investment deals usually need stronger credit
- Debt-to-income (DTI): Fannie Mae caps many manual files at 45% (up to 50% on some automated approvals); rental income and rent rolls can offset personal DTI
- Cash reserves: Fannie Mae expects six months of PITIA on investment property loans, plus extra reserves (about 2% of unpaid balance) if you hold multiple financed properties
Higher leverage means lenders want clear proof you can absorb a slow month. Reserves are part of the approval, not optional padding.
How to Structure Financing to Reach 90% LTV
Since a single conventional first mortgage rarely stretches to 90% on an investment property, most investors get there by stacking financing.
Piggyback Loans
A piggyback loan structure, as defined by the Consumer Financial Protection Bureau, pairs a first mortgage (covering roughly 75-80% LTV) with a second mortgage or HELOC that fills the gap to 90%. The lender has to permit subordinate financing on the property, and lenders underwrite both liens together.
Adding a Co-Borrower
Bringing on a co-borrower with strong credit and steady income can:
- Strengthen the blended DTI ratio
- Improve approval odds with lenders who cap LTV based on borrower strength
- Split ownership responsibility, which cuts both ways on future decisions
Other Paths to the Gap
- Seller financing: The seller holds a note instead of taking full cash at closing. The National Association of Realtors notes that protections and terms vary heavily by state, so document carefully.
- Private or hard money lenders: Faster underwriting, but typically higher rates and shorter terms.
- Joint-venture equity partners: A partner contributes the down payment gap in exchange for shared ownership and profit. This reduces your leverage need rather than increasing debt.
Lendora Funding works with real estate investors to sort through these paths (term loans, real estate funding, or partner-based solutions) based on what actually fits a specific 90% LTV goal.
Costs and Risks of High-LTV Investment Loans
More leverage costs more. That's the trade-off, and it shows up in a few specific ways.
Typical extra costs at 90% LTV:
- Mortgage insurance: General PMI illustrations run roughly $30–$70 per month per $100,000 borrowed (Freddie Mac consumer materials; not investment-specific)
- Origination fees: Often 0.5%–1% of the loan amount
- Rate premiums: Investment property rates typically run at least 0.50 points higher than owner-occupied loans, with added high-LTV price adjustments
The bigger risk is the thin equity cushion. With only 10% down, a market dip or extended vacancy erodes your position much faster than it would with 25% equity.
Investors using 90% LTV should plan reserves beyond the lender's minimum:
- Cash to cover several months of PITI and vacancy
- A buffer for repairs, capex, and rate or insurance shocks
- Enough liquidity to avoid forced sale if the market softens
Steps to Improve Your Approval Odds
Getting to 90% LTV comes down to presenting the strongest possible file, not chasing a single "magic" lender.
- Check and improve your credit score first. Even a 20–30 point jump can move you into a better LTV tier or a lower pricing bracket.
- Gather your documentation early — rent rolls, signed lease agreements, and cash-flow projections that show the property can cover its own payments.
- Shop multiple lender types. Banks, portfolio lenders, and credit unions set different LTV ceilings, fees, and mortgage insurance costs. Get quotes from more than one category before you commit.
- Get your reserves in order. Aim for roughly six months of PITI set aside before you apply—lenders treat ready reserves as a strength signal.
Lendora Funding can help you pressure-test that file before you apply:
- One-on-one consults with funding specialists such as Yane Scolano to review your profile and match you with lenders whose programs fit
- Credit repair support with personalized strategies if your score needs work before you qualify
Frequently Asked Questions
How can I get around a 20% down payment on an investment property?
Piggyback loans, co-borrower arrangements, seller financing, and portfolio lender programs can all reduce the cash needed upfront compared to the standard 20-25% down. Each comes with trade-offs in cost, complexity, or shared ownership.
Is a 90% LTV good?
High leverage can be a strong fit if you want to preserve cash for other deals. You pay more in financing costs and hold a thinner equity cushion if values soften.
What does 90% LTV mean?
It means the loan covers 90% of the property's value, so you only need a 10% down payment at closing.
What is a good LTV for investment property?
Most lenders consider 75-80% LTV standard and lower-risk. Anything from 85-90% is high leverage and requires a stronger borrower profile to qualify.
What is the 20/30/40 rule for buying a house?
It isn't a recognized mortgage or agency standard—only an informal budgeting guideline. Lenders more often use the 28/36 rule for housing costs and total debt relative to income.
Can a 70-year-old woman get a 30-year mortgage?
Yes. Under fair lending laws enforced by the CFPB, age cannot be used to deny mortgage approval. Qualification depends on income, credit, and assets — not the borrower's age.
