By Ken Powell** · NMLS #2656628 · Mortgage Loan Officer, Fairway Home Mortgage · La Plata, MD
Retired U.S. Navy veteran · Former Realtor with 10+ years in real estate · Investor since 2014
Yes. Using conventional underwriting, not a DSCR loan, qualified borrowers can buy an investment property in Charles County with as little as 10% down. You qualify on your documented income, the loan allows closing in an LLC, and it generally requires a 740 plus credit score with standard conventional debt-to-income limits up to 50%. On a $400,000 Waldorf rental, that is $40,000 down instead of $100,000. Sixty thousand dollars stays in your pocket.
For most of the past decade, buying a rental property meant putting 20 to 25 percent down. In my experience, both as a lender and as an investor since 2014, that down payment is the single biggest reason capable investors stay on the sidelines. It is rarely that they cannot qualify. It is that the down payment ties up cash they would rather have working across more than one deal.
There is now a conventional financing option that allows investment property purchases in Charles County with as little as 10 percent down. It is not a DSCR loan, and it allows closing in an LLC. Here is exactly how it works, who it fits, and the math that makes it worth a hard look.
Yes. Through conventional underwriting, qualified borrowers can purchase a single-family rental, a townhome rental, or a similar small investment property with a 10 percent down payment. The key difference from investor-specific products: you qualify on your documented personal income, the same way you would for a primary residence, rather than on the property’s projected rent.
That distinction matters because conventional underwriting generally produces better pricing for borrowers who can document their income. Instead of paying a premium for a property-based qualification, your strong financial profile is what earns you the terms.
DSCR loans have earned their popularity with investors, and I close plenty of them. They qualify you on the property’s rental income instead of your personal income, which is powerful for self-employed investors and for anyone whose tax returns understate their real earnings. You can read the full breakdown on my DSCR loans page.
But DSCR loans carry tradeoffs: typically 20 to 25 percent down, and usually higher rates and fees than conventional financing. The 10 percent down product is the opposite approach. You qualify on your income, and in exchange you get a lower down payment and generally better pricing. For a W-2 professional or a business owner with clean, documentable income, it is often the more efficient path. For a self-employed investor whose write-offs make documentation difficult, DSCR usually remains the better tool. The right answer depends on your file, and I will tell you which one wins honestly.
This is the feature experienced investors ask about first. Most conventional financing requires the property to close in your personal name, which forces LLC investors to choose between conventional terms and the entity structure they want for liability protection and portfolio organization. This product removes that tradeoff. You keep the LLC and still get conventional pricing with 10 percent down.
This is a strong-file product. The general guidelines:
If your credit and income are strong and the down payment has been the bottleneck, this likely fits. If documenting income is the hard part, a DSCR loan is probably still your route.
The whole point is capital efficiency. Here is the down payment comparison at three realistic Charles County price points, from a St. Charles townhome to a White Plains single-family:
| Purchase Price | 25% Down (Typical) | 10% Down (This Product) | Capital Kept |
|---|---|---|---|
| $300,000 | $75,000 | $30,000 | $45,000 |
| $400,000 | $100,000 | $40,000 | $60,000 |
| $500,000 | $125,000 | $50,000 | $75,000 |
On a $400,000 Waldorf rental, the difference is $60,000 in upfront capital. That covers reserves, a renovation budget, or most of the down payment on a second property. If your goal is building a portfolio rather than maximizing cash flow on one door, keeping that capital deployable is usually worth more than the slightly lower payment a bigger down payment buys.
I lend from La Plata and invest in this market myself, so I will give you the local case plainly. Charles County has a growing population, stable government and military employment feeding it from the Washington Navy Yard, Joint Base Andrews, NSF Indian Head, and the federal agencies across the National Capital Region, and steady rental demand from that same workforce. Waldorf in particular offers opportunity in both directions: plenty of 1980s and 1990s housing stock for value-add investors, and a deep commuter tenant pool for buy and hold. My Charles Neighborhood Guide maps the communities and the loan strategies that close in each one.
It is the right move when you have strong credit and documentable income, you want to preserve capital to keep acquiring, and you want the property held in an LLC. If qualification was never your problem and the down payment was, this changes your math.
Another option may be better when maximizing monthly cash flow on a single property matters more than growth (a bigger down payment lowers the payment), or when your income is hard to document, in which case a DSCR loan that qualifies on the rent is the more practical tool despite the larger down payment.
The right structure depends on your portfolio, your income profile, and where you are trying to go. That is a 15-minute conversation, and it is worth having before you write your next offer.
I will show you how the 10 percent down option pencils on a specific Charles County property, including the LLC structure and a side-by-side against a DSCR loan. Straight numbers, no pressure.
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📞 240-237-7855 · La Plata, MD · NMLS #2656628
Yes. Using conventional underwriting, qualified borrowers can purchase an investment property in Charles County and across Maryland with as little as 10% down. It is not a DSCR loan. You qualify on your documented income, generally with a 740 plus credit score and standard conventional debt-to-income limits.
A DSCR loan qualifies you on the property’s rental income and usually requires 20 to 25% down with higher pricing. The 10% down product uses conventional underwriting, so you qualify on your documented income and typically get better pricing, if your income is clean enough to document.
Yes. This product allows closing in an LLC, which conventional financing typically does not. Investors who hold property in an LLC for liability protection no longer have to give up conventional terms to keep that structure.
Generally 740 to 760, depending on how many financed properties you already own, along with standard conventional DTI limits up to 50%. It is designed for strong-file borrowers with documented income.
On a $400,000 Charles County property, 25% down is $100,000 and 10% down is $40,000. That is $60,000 kept in your pocket for reserves, renovations, or the down payment on the next property.
About the Author
Ken Powell · Mortgage Loan Officer, Fairway Home Mortgage · NMLS #2656628 · La Plata, MD
Ken is a retired U.S. Navy veteran, a former Realtor with more than 10 years in real estate, and an investor since 2014. He specializes in VA, DSCR, and investor financing across Maryland, Virginia, and DC, and runs the real numbers honestly before you write an offer. Learn more →
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Related reading: DSCR Loans · Cash-Out Refinance in Calvert County · Charles County Mortgage Guide · Charles Neighborhood Guide
Disclosure: This article is for educational purposes and does not constitute financial or legal advice specific to your situation. Loan programs, qualification guidelines, rates, and terms are illustrative, subject to change, and vary by borrower and property. All loans are subject to credit approval and underwriting. Down payment, credit, and DTI requirements shown are general guidelines and not a commitment to lend. Contact a licensed mortgage professional for advice specific to your situation. Ken Powell · Fairway Independent Mortgage Corporation · NMLS #2656628 · Company NMLS #2289 · Equal Housing Lender · Licensed in MD and VA.