Investment Property Loan
Investment property loans finance the purchase of non-owner-occupied rental properties, with options ranging from conventional programs to non-QM alternatives like DSCR loans.
Min. Down Payment
Typically 15-25% depending on loan type
Credit Guidance
Generally 620-680+ for conventional; varies for DSCR
Income / DTI
Full documentation or DSCR-based qualifying available
Occupancy
Non-owner-occupied investment property
Property Types
Investment property financing covers loans for the purchase of non-owner-occupied properties — homes, condos, or small multifamily buildings purchased as rentals or income-producing assets. Conventional investment property loans follow Fannie Mae and Freddie Mac guidelines, using personal income documentation (tax returns, W-2s, or pay stubs) to qualify. They require larger down payments and carry higher pricing than owner-occupied loans, but offer the predictability of standard underwriting. For investors who prefer not to rely on personal income — or whose tax returns don't reflect actual cash flow — DSCR (Debt Service Coverage Ratio) loans are an alternative. DSCR loans qualify based on whether the property's rental income covers its mortgage payment, without requiring personal income documentation. Bank statement loans are a third option for self-employed investors who have strong cash flow but complex tax situations. Investment property lending involves more complexity than primary residence financing. Reserve requirements, property eligibility, and the number of financed properties all factor into the decision. We can help you identify which approach fits your investment strategy and financial profile.
Key Benefits
- Multiple financing pathways available: conventional, DSCR, bank statement, and others
- Can be used for single-family rentals, small multifamily, and condos
- Conventional investment loans use standard income documentation
- DSCR alternatives qualify based on the property's rental income, not personal income
Considerations
- Higher loan pricing than owner-occupied properties
- Larger down payment required — typically 15-25% or more depending on loan type
- Stricter reserve requirements than primary residence loans
- Number of financed investment properties can affect program eligibility
- Rental income from the subject property may or may not be counted for qualifying depending on the program and documentation
Frequently Asked Questions
Have questions about Investment Property Loan?
Mia can explain this public overview and help you prepare questions for a loan officer. Current terms and eligibility need individual confirmation.
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Work Hard Mortgage · NMLS #2396714 · Equal Housing Opportunity · Licensed in Utah. Program availability and guidelines may change. Final eligibility depends on credit, income, assets, property type, occupancy, and underwriting approval.