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Real estate rentals · 14 min

Buying your first rental

A rented house is for sale at a typical price, and it brings in a typical rent. Is that a good buy? Two numbers answer it, and one of them changes the moment you borrow.

Ticket 01 · The guess

How much down?

Freddie Mac buys home loans from lenders, so lenders who sell to it follow its rules. For a house you'll rent out and won't live in, what's the smallest down payment it accepts, as a share of the price?

30%
0%50%
Words to know

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Tell us what looks off. No name or email needed.

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Sources and every number (2)

Sources

  • Single-Family Seller/Servicer Guide: Maximum LTV/TLTV/HTLTV ratio requirements for conforming and super conforming mortgages (purchase and no cash-out refinance) · Freddie Mac, 2026
  • Selling Guide B3-4.1-01, Minimum Reserve Requirements (August 7, 2024) · Fannie Mae, 2024

Every number

  • 15%freddiemac.com ·2026 · Worked out: the price minus the most Freddie Mac buys a loan for (as a share of the price) on a one-home property the buyer won't live in, purchase loans.
  • 25%freddiemac.com ·2026 · Worked out: the price minus the most Freddie Mac buys a loan for on a property with two to four homes the buyer won't live in, purchase loans.
  • 5%freddiemac.com ·2026 · Worked out: the price minus the most Freddie Mac buys a loan for on a home the buyer lives in, with one to four homes, for loans its system accepts (manually underwritten loans on two to four homes need more down).
  • 6 monthsfanniemae.com ·2024 · Fannie Mae's minimum reserves for an investment property purchase, and for a two-to-four-home home the buyer lives in, on loans its system reviews: months of the payment with tax and insurance.
  1. Lessons›
  2. Industries›
  3. Real estate rentals
  • ·Before this: How a rental makes money
  • ·Next: Finding a good tenant
  • ·Free guide: How landlords make money
Skip to the lesson
Back to the home page and map, from TryOwning · Real estate rentals · Lesson 2
Part 1 of 3Part 1 of 3, 0 done

Real estate rentals · 14 min

Buying your first rental

A rented house is for sale at a typical price, and it brings in a typical rent. Is that a good buy? Two numbers answer it, and one of them changes the moment you borrow.

Ticket 01 · The guess

How much down?

Freddie Mac buys home loans from lenders, so lenders who sell to it follow its rules. For a house you'll rent out and won't live in, what's the smallest down payment it accepts, as a share of the price?

30%
0%50%
Words to know

Spot something wrong?

Tell us what looks off. No name or email needed.

What kind of problem?

0 / 1000

We'll also send this page, the lesson, ticket 1, so we can find it. Nothing else. Privacy

·
Sources and every number (2)

Sources

  • Single-Family Seller/Servicer Guide: Maximum LTV/TLTV/HTLTV ratio requirements for conforming and super conforming mortgages (purchase and no cash-out refinance) · Freddie Mac, 2026
  • Selling Guide B3-4.1-01, Minimum Reserve Requirements (August 7, 2024) · Fannie Mae, 2024

Every number

  • 15%freddiemac.com ·2026 · Worked out: the price minus the most Freddie Mac buys a loan for (as a share of the price) on a one-home property the buyer won't live in, purchase loans.
  • 25%freddiemac.com ·2026 · Worked out: the price minus the most Freddie Mac buys a loan for on a property with two to four homes the buyer won't live in, purchase loans.
  • 5%freddiemac.com ·2026 · Worked out: the price minus the most Freddie Mac buys a loan for on a home the buyer lives in, with one to four homes, for loans its system accepts (manually underwritten loans on two to four homes need more down).
  • 6 monthsfanniemae.com ·2024 · Fannie Mae's minimum reserves for an investment property purchase, and for a two-to-four-home home the buyer lives in, on loans its system reviews: months of the payment with tax and insurance.
  1. Lessons›
  2. Industries›
  3. Real estate rentals
  • ·Before this: How a rental makes money
  • ·Next: Finding a good tenant
  • ·Free guide: How landlords make money