How much down payment is required?

There is no single minimum for every campus-area purchase. The program, occupancy, borrower, property and lender determine the requirement. A parent/student arrangement and a non-owner-occupied investment may lead to different financing reviews.

Use percentages in a calculator as scenarios, not statements of eligibility. Ask for the exact program requirements after the property use and borrower structure are established.

The down payment is only one part of initial cash

Add closing costs, prepaid expenses, any required reserves and immediate repairs. A furnished student home may also need beds, desks and other purchases before occupancy. Separate those estimates so you can replace each with actual numbers.

A larger down payment can reduce debt service while reducing the cash available for unexpected costs. Compare both effects before deciding how much cash to commit.

Test a few complete budgets

Try several down-payment percentages while holding price and rate constant. Record the loan amount, estimated payment and cash remaining. Then obtain a lender quote because a different leverage level may also change the actual rate or insurance cost.

For an investment, test a vacancy period. For a parent purchase, remove roommate contributions. The reserve need can become clearer when the expected income temporarily disappears.

Ask Matt to review the tradeoff

Share the purchase price, intended use, down-payment source and minimum reserves you want to retain. Ask which options are available with those constraints. Do not move borrowed or gifted funds based on a calculator assumption; obtain the lender’s documentation instructions for the actual transaction.