Investment Property Loans
Finance your rental property portfolio with conventional, DSCR, and alternative loan programs. Build wealth through real estate investing.
Compare Investment Loan Options
Choose the financing that matches your investment strategy
Conventional Investment Loans
Traditional financing for investment properties with competitive rates and flexible terms.
- •Lower rates than alternative programs
- •Established program with predictable guidelines
- •Can finance up to 10 properties
- •Cash-out refinance available
- •Full income documentation required
- •Max 10 financed properties
- •Reserves required (2-6 months)
- •Higher down payment than primary residence
W2 employees and investors with steady documented income
DSCR Loans (No Income Verification)
Qualify based on the property's rental income, not your personal income or tax returns.
- •No tax returns or W2s required
- •Unlimited number of properties
- •Fast closing (10-14 days possible)
- •Perfect for self-employed investors
- •Slightly higher rates (1-2% above conventional)
- •Minimum DSCR ratio of 1.0 (0.75 with higher down)
- •Higher reserves required (6-12 months)
- •Fewer lenders offer these programs
Self-employed, portfolio builders, foreign nationals, and Airbnb investors
Portfolio Loans
Flexible loans held by the lender, not sold to Fannie/Freddie. Customized underwriting.
- •Flexible guidelines for unique situations
- •Can exceed conventional property limits
- •May allow lower credit scores
- •Custom terms available
- •Higher interest rates
- •Larger down payments required
- •Prepayment penalties common
- •Fewer lenders offer portfolio loans
Experienced investors with unique properties or situations
Fix & Flip / Hard Money
Short-term financing for purchasing and renovating properties to resell quickly.
- •Fast approval and funding (days)
- •Based on after-repair value (ARV)
- •Renovation funds included
- •Less stringent credit requirements
- •High interest rates (8-12%)
- •Points required (2-4% of loan)
- •Short terms (6-18 months)
- •Expensive if you hold longer than planned
Experienced flippers who can complete renovations and sell quickly
Need help choosing? Our investment property specialists will analyze your situation.
Speak with an Investment Loan SpecialistInvestment Property Types We Finance
Different properties, different strategies
Single-Family Homes
The most common and easiest to finance. Best liquidity and broadest tenant pool.
2-4 Unit Multi-Family
Duplex, triplex, or fourplex. Still residential financing with better cash flow.
Condos & Townhomes
Lower maintenance but subject to HOA rules and fees. Appreciation may lag SFH.
Short-Term Rentals (Airbnb/VRBO)
Higher potential income but more management and regulation risk.
Key Investment Metrics to Know
Evaluate deals like a pro investor
Cash-on-Cash Return
Annual cash flow divided by total cash invested
Cap Rate
Net operating income divided by purchase price
Debt Service Coverage Ratio
Rental income divided by mortgage payment
Gross Rent Multiplier
Purchase price divided by gross annual rent
The 1% Rule Quick Screen
A quick way to screen deals: Monthly rent should equal at least 1% of purchase price. For a $250,000 property, you want $2,500/month or higher in rent.
Note: This is a screening tool, not a definitive analysis. In appreciating markets like Atlanta, properties below 1% can still be strong investments due to equity growth.
Investment Loan Requirements
Conventional Investment Loans
- Credit Score: 620+ (680+ for best rates)
- Down Payment: 15-25%Lower with multiple properties
- Reserves: 2-6 months PITIMore for multiple properties
- Documentation: Full income verificationTax returns, W2s, pay stubs
- Property Limit: Up to 10 financed properties
DSCR Loans (No Income Verification)
- Credit Score: 620+ (680+ for best rates)
- Down Payment: 20-25%30% for DSCR below 1.0
- Reserves: 6-12 months PITI
- Documentation: No income verificationJust rent roll/market rent appraisal
- Property Limit: Unlimited
Investment Property Loan FAQs
Can I use rental income to qualify for an investment property loan?
Yes! Lenders typically count 75% of the rental income (to account for vacancy) toward your qualifying income. For properties you already own, you'll need a signed lease. For new purchases, appraisers provide a market rent opinion (Form 1007) showing expected rental income.
What's the maximum number of investment properties I can finance?
Conventional loans max out at 10 financed properties total (including primary residence). However, DSCR loans and portfolio loans have no limit, allowing experienced investors to scale indefinitely. This is one reason many investors switch to DSCR loans after hitting the conventional limit.
Are interest rates higher for investment properties?
Yes, investment property rates are typically 0.50-0.875% higher than primary residence rates. DSCR loans are an additional 1-2% higher than conventional investment loans. The higher rates reflect increased risk to lenders, as borrowers are more likely to default on investment properties than primary residences during financial hardship.
Can I convert my primary residence to a rental and buy another home?
Yes! This is a common strategy. You must have lived in the property as your primary residence for at least 12 months. You'll need a lease agreement (signed or pending) for the property you're converting, and the lender will count 75% of the rental income. Mortgage rates on your new primary residence will be lower than if you bought another investment property.
Do I need an LLC to buy investment property?
No, you can buy investment properties in your personal name. Many investors use LLCs for liability protection, but most residential investment loans require personal guarantees anyway. If you do have an LLC, we can often close in the LLC name with you as the personal guarantor. Consult a CPA and attorney about the best structure for your situation.
Can I finance a property that needs major renovations?
It depends on the extent of repairs. Conventional and DSCR loans require properties to be in livable condition (no major safety, structural, or system issues). For properties needing extensive work, consider FHA 203(k) loans (if you'll occupy), HomeStyle renovation loans, or hard money/fix-and-flip loans. We offer renovation financing options for investors.
Ready to Grow Your Portfolio?
Speak with our investment property specialists to find the best financing for your strategy.
Licensed in Georgia, Florida, Texas, and California • NMLS #2043109