By Ken Clark Jr. ยท Certified Mortgage Advisor & Branch Manager ยท NMLS #225375 Last updated:
Ken Clark Jr.
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Investment Property Loans

โœ“ Last verified against available program guidelines: May 17, 2026

Build your real estate portfolio with the right financing.

Whether you're buying your first rental, expanding a portfolio, or running a BRRRR strategy, the right investment property loan can make or break the deal. We offer conventional, DSCR, portfolio, and short-term rental financing options for investors across California, New Jersey, and nationwide.

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Who investment property loans are for

First-time investors buying a single-family or condo rental. Buy-and-hold investors building portfolios. House hackers using 2-4 unit multifamily as primary residences with rental units. BRRRR investors (Buy, Rehab, Rent, Refinance, Repeat). Short-term rental hosts running Airbnb or VRBO. Flippers needing bridge financing.

Investment loan programs we offer

Conventional Investment Property

20-25% down, full doc, 30-year fixed. Best pricing for strong borrowers with tax-return-documented income.

DSCR Loan

Qualify on rental income only. No tax returns. Single-family, 2-4 unit, short-term rental.

2-4 Unit Multifamily Conventional

Owner-occupied: 5% down with FHA or 5% with conventional. Investment: 25% down.

Portfolio Loans (Blanket)

Finance multiple properties under one loan. Useful for investors with 4+ properties.

Short-Term Rental (Airbnb/VRBO) Financing

DSCR using projected STR income. Some markets have higher down payment.

BRRRR Strategy Financing

Bridge or hard money for acquisition + rehab, then DSCR refinance to cash out.

Non-QM Investment Loans

Bank statement, P&L, asset-based for self-employed investors.

Cash-Out Refinance on Rentals

Pull equity from existing rentals to expand. Up to 75% LTV conventional, 80% DSCR.

Investment loan qualifying basics

Credit score

Conventional: 620+. DSCR: 620+. Portfolio: 680+. Non-QM: 660+.

Down payment

20-25% on single-family. 25-30% on 2-4 unit. Higher on short-term rental.

Reserves

6 months PITIA per property is typical. More for multiple properties.

Rental income use

75% of market rent is counted toward DTI on conventional. DSCR uses full rental income.

Properties owned

Conventional caps at 10 financed properties. Portfolio and DSCR programs have no cap.

Documentation

Tax returns and leases for conventional. Leases or rent estimates only for DSCR.

Frequently Asked Questions

Common questions on investment property loans, answered by Ken Clark Jr., Certified Mortgage Advisor.

What loan options are available for investment properties?

Conventional financing requires tax returns and personal income documentation, typically with 20-25% down. DSCR loans qualify on rental income only with no tax returns. Portfolio loans finance multiple properties. Non-QM programs (bank statement, P&L, asset-based) help self-employed investors qualify.

How much down payment do I need for an investment property?

Conventional investment property requires 20-25% down on single-family and 25-30% on 2-4 unit. DSCR loans typically require 20-25%. Short-term rental loans often require 25-30%. House-hacking a 2-4 unit as your primary residence allows much lower down payments (3.5-5%).

Can I use FHA or VA for an investment property?

Not directly. FHA and VA loans require the property to be your primary residence. However, you can buy a 2-4 unit multifamily property with FHA (3.5% down) or VA (0% down), occupy one unit, and rent the others. Many house hackers use this strategy to build portfolios.

What is a DSCR loan and how is it different from conventional investor financing?

DSCR loans qualify on the property's rental income rather than the borrower's personal income. Conventional investment loans require tax returns, W-2s, and DTI calculations. DSCR requires only credit, reserves, and a rental income estimate. Same property, two completely different qualification paths.

How many investment properties can I finance?

Conventional financing through Fannie Mae and Freddie Mac caps at 10 financed properties per borrower. Portfolio loans and DSCR loans have no cap. Investors with more than 4-5 properties often shift to DSCR and portfolio strategies.

Can I cash-out refinance my rental property?

Yes. Conventional cash-out on investment property goes up to 75% LTV. DSCR cash-out goes up to 75-80% LTV. Many BRRRR investors use cash-out refinance to recover their initial investment after stabilizing a rehabbed property.

What is the BRRRR strategy?

BRRRR is Buy, Rehab, Rent, Refinance, Repeat. Investors acquire and renovate a distressed property using bridge or hard money, stabilize it with a tenant, then refinance into a long-term DSCR or conventional loan to pull cash back out and fund the next deal.

Do investment property loan rates differ from primary residence rates?

Yes. Investment property rates are typically 0.5-1.0% higher than primary residence rates because lenders consider rentals riskier. Stronger credit, lower LTV, and larger reserves help reduce the spread.

Related Programs & Tools

FHA Loans โ†’ VA Loans โ†’ Non-QM Loans โ†’ Refinance โ†’ Renovation Loans โ†’ DPA Finder โ†’ Calculators โ†’ First-Time Buyer โ†’

Let's talk through your investment property loans scenario.

Schedule a free discovery call with Ken Clark Jr. and get a clear plan for your investment property loans financing.

Schedule a Discovery Call