I’m looking to buy a house to rent out the rooms.

[Nicholas Sinclair]

What are my options for down payments when buying a house to rent out?

[Nicole A.]

Okay, yes, you will need 20-25% down. And don't forget closing costs which is roughly 5% of the purchase price, but you could try to negoitate the seller to pay some or all of this. Interest rates tend to be higher on non-owner occupied loans. So shop around. Go into smaller local banks and talk to them.

Also, start researching your area's rental laws and requirements. Many times, there are extra requirements (even on top of a normal rental property) to make it a legal rooming house.