Investment Property Loans

Financing built for rental income and portfolio growth

What is a investment property loan?

Investment property loans finance homes you do not live in. Because non-owner-occupied loans default more often than primary residences, lenders require larger down payments, more reserves, and charge risk-based price adjustments. Beyond standard conventional financing, DSCR loans qualify on the property's rental income rather than your personal tax returns, which is how most serious investors scale past the conventional financed-property limit.

Ideal for: First-time landlords, self-employed investors whose tax returns understate cash flow, and portfolio builders who have hit the conventional financed-property limit.

Key Benefits

  • Finance single-family, 2–4 unit, and condo rentals
  • DSCR programs qualify on rent, not tax returns
  • Rental income can offset the new mortgage payment
  • Fixed and adjustable structures, plus interest-only options
  • Portfolio and blanket options for multiple properties
  • Cash-out refinance to recycle equity into the next purchase

    • How Investment Property Loans Work

    Pick the qualification path

    Conventional investment loans qualify on your personal income and debts. DSCR loans qualify on whether the property's rent covers its payment — no tax returns required.

    Plan for 15%–25% down

    Single-family rentals typically start at 15% down on conventional financing and 20%–25% on DSCR; 2–4 unit properties require more.

    Document reserves

    Lenders want several months of payments in reserve per financed property. This is often the constraint that limits how fast an investor can buy.

    Use rental income to qualify

    A signed lease or an appraiser's market-rent schedule can offset the new payment, and DSCR programs use that ratio as the entire qualification test.

    Investment Property Loans Requirements at a Glance

    Minimum credit score

    680 conventional; 660+ many DSCR programs

    Minimum down payment

    15% single-family; 20%–25% multi-unit/DSCR

    Reserves

    6+ months per financed property is common

    Qualifying income

    Personal income or property DSCR

    Property types

    1–4 units, condos, short-term rentals on select programs

    What it costs

    Expect higher rate adjustments than an owner-occupied loan plus standard closing costs of 2%–5%. DSCR programs often carry origination points, which the higher leverage and simpler documentation usually justify for active investors.

    Things to Consider

  • Rates and fees are higher than owner-occupied financing
  • Down payments start at 15% and rise with unit count
  • Reserves are required for each financed property
  • Conventional guidelines cap the number of financed properties

    • Investment Property Loans FAQs

    How much down payment do I need for a rental property?

    Conventional financing on a single-family rental generally starts at 15% down, with better pricing at 20%–25%. Two-to-four-unit properties require more.

    What is a DSCR loan?

    A debt-service-coverage-ratio loan qualifies on whether the property's rent covers its mortgage payment, taxes, and insurance — no personal income documentation required.

    Can I count rental income to qualify?

    Yes. A signed lease or the appraiser's market-rent schedule can offset the payment, typically with a vacancy factor applied.

    How many investment properties can I finance?

    Conventional guidelines cap financed properties, commonly at ten. DSCR and portfolio lenders go well beyond that.

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