The interest rate is determined by the following:Your experience as an investor - the longer you've been an investor, the better the rateYour Mid Credit Score - Usually need at least a 650The property's merit - where it's located - metropolitan area is bestYou need skin in the game - in most cases 20% downNeed an exit strategy - lenders want to know what you plan to do with the property & how you plan to pay off the loan: ie.: Fix/Flip properties, construction, land loansWhat are your financials?  

Just ask yourself the question in reverse:  Would you invest your money with someone who had no experience and no financial skin in the game?  

Since it's an investment and not a personal residence lenders will require you to put some more skin in the game and that's why you're seeing the bigger down payments.

They have more skin in the game then you do.

Do not be surprised, if most people will want you to have "skin in the game" (cash).

Gosh, I sound ridiculous saying that, but I've been buying MFs and SFs and I have the money and thick skin to go bigger.

Regional lenders, however, were not happy with the strategy and would not give me credit for the value I created because they wanted me to have skin in the game.

Down payment is just meant to lower the loan-to-value ratio so you have skin in the game and it increases the spread for the lender.

Besides,there is cost of money ( specifically hard money ) and you will have skin in the game no matter. 

A: If you need to borrow the down payment and the seller carries back the balance, you have no skin in the game.