Investment Property & Rental Loans

Conventional Investor Loans vs. DSCR

Conventional investment financing underwrites you personally: income, debt ratios, credit and reserves. It usually offers the best pricing, but it counts every financed property against your ratios, which eventually caps how many you can hold.

DSCR loans qualify on the property's debt service coverage ratio — the rent divided by the total housing payment. If the property covers itself (generally a 1.0 ratio or better, sometimes lower with adjustments), your personal income isn't the constraint. That's how most investors scale past the conventional limits.

Down Payment and Reserve Expectations

Plan on 15%–25% down for a single-unit rental and more for two- to four-unit properties, plus cash reserves — often several months of payments per financed property. Credit requirements are stricter than owner-occupied financing, and pricing improves noticeably at higher scores and larger down payments.

Using Rental Income to Qualify

For a purchase, lenders typically use a market rent appraisal (Form 1007) and count roughly 75% of that rent to account for vacancy and maintenance. On properties you already own, income comes from Schedule E on your tax returns. We review both paths and structure the file the way that qualifies you for the most.

Frequently Asked Questions