Do these 3 things before closing this tab:
1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesThe best investment-property loan depends on the property, how you will use it, and how you qualify—not on a single lender or advertised rate. For a U.S. one- to four-unit rental, compare conventional agency mortgages with DSCR and portfolio loans, and assess each written offer by its full cost and cash requirements. If you will live in one unit, owner-occupied FHA or VA financing may be a separate option, subject to program rules.
Start with the property and occupancy
Before comparing lenders, establish what you are financing: the number of units, whether you will occupy a unit, and whether the transaction is a purchase or refinance. Freddie Mac’s investment-property overview covers eligible one- to four-unit properties and purchase, no-cash-out refinance, and cash-out refinance transactions. Eligibility still depends on the property, borrower, underwriting findings, rental-income treatment, reserves, and lender overlays; the overview does not replace Freddie Mac’s Seller/Servicer Guide.
Financing for a property you will not occupy is different from an owner-occupied home loan. FHA and VA financing is for eligible primary residences, not a rental property you will leave vacant of your own occupancy. A qualifying borrower may be able to buy a multiunit home, occupy one unit, and rent the others, subject to the program’s occupancy and other requirements.
Compare the main investment-property loan options
Conventional agency mortgage
For an eligible one- to four-unit residential rental, a conventional mortgage sold to or underwritten to agency standards is a common starting point. Freddie Mac lists fixed-rate and most adjustable-rate mortgage products, subject to its guide requirements. Its overview says investment-property credit fees apply and that these loans must receive an Accept recommendation from Loan Product Advisor; manual underwriting is not permitted under that overview. Ask the lender how credit, reserves, rental income, loan-to-value limits, and any lender overlays affect your specific application.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
#1 Best Overall
DSCR loan
A debt-service coverage ratio (DSCR) loan centers qualification on eligible rental-property income relative to debt service. The lender determines how income and debt service are calculated, what ratio is required, what documentation is needed, and whether the borrower or an entity may take the loan. There is no single DSCR threshold or rate that applies across lenders, so request the actual written criteria and terms.
Portfolio loan
A portfolio lender keeps the loan rather than selling it into a standard agency channel and applies its own underwriting rules. That flexibility may help with a transaction that does not fit a common program, but eligibility, pricing, servicing, prepayment terms, and availability are lender-specific.
Rank #2
Owner-occupied multiunit FHA or VA financing
If you are eligible and will occupy one unit, FHA or VA financing may make it possible to rent other units in a qualifying multiunit property. This is not financing for a property you will not occupy. Confirm the applicable program’s occupancy, property, and borrower conditions before treating it as an investment-property route.
Home equity borrowing or cash-out refinance
You may raise purchase funds through a home equity loan or by refinancing an existing property and taking cash out. In either case, the property securing that debt is collateral. A cash-out refinance replaces the existing mortgage and comes with new closing costs, so compare the total cost and consider what happens if you cannot repay.
Free tools Windows power users keep installed
One-click scans. No signup required.
Bridge, hard-money, or private financing
Short-term financing may suit a timing gap or renovation project, but it is not interchangeable with a long-term amortizing rental mortgage. Before accepting one, identify the payoff source, expected carrying costs, deadline, and backup exit if the property cannot be refinanced or sold on schedule.
Commercial multifamily financing
Apartment buildings with five or more units generally call for commercial multifamily financing rather than a one- to four-unit residential mortgage. Fannie Mae’s fixed-rate multifamily term sheet lists a 1.25x minimum DSCR for conventional properties and typically requires 90% stabilized occupancy for 90 days before funding. The sheet says pre-stabilized cases may be considered individually; confirm the terms and exceptions for the specific asset class and transaction.
Rank #4
How much down payment or equity do you need?
There is no universal down-payment threshold for an investment property. Required cash depends on the transaction, unit count, borrower, property, loan program, and lender. Rocket Mortgage says a qualifying one-unit investment-property purchase through Rocket may start at 15% down; that is a lender-specific, conditional example, not a market-wide rule. Its guide separately says refinance equity requirements vary.
Keep purchase rules distinct from refinance eligibility. In a Fannie Mae Selling Guide table dated March 4, 2026, 75.01% is the minimum LTV entry for one- to four-unit investment property in a particular high-LTV refinance table. It is not a general purchase LTV or a universal down-payment rule. Ask the lender which exact program and transaction table governs your scenario, and budget for closing costs and any required reserves as well as the down payment.
How to compare investment-property loan offers
- Request quotes for one identical scenario. Give each lender the same purchase price or value, loan amount, property and unit count, occupancy, term, rate structure, down payment or equity, and rate-lock period. Request a written quote or Loan Estimate.
- Identify the loan category and assumptions. Ask whether the offer is agency-conforming, DSCR, portfolio, bridge, or another type. Have the lender state how it treats rental income, what underwriting assumptions it uses, and which overlays apply.
- Compare the whole cost, not just the rate. Review the note rate and APR alongside discount points, origination and other lender charges, lender credits, cash to close, projected payments, and reserve requirements. Include prepayment terms where relevant. Points can reduce the interest rate while raising upfront costs.
- Check that the offers are genuinely comparable. An owner-occupied quote and a non-owner-occupied quote do not carry identical risk or eligibility. Fannie Mae’s Desktop Underwriter risk-factor guidance, published April 22, 2026, describes investment-property transactions as higher risk than second-home and owner-occupied transactions, and fixed-rate mortgages as lower risk than ARMs in its risk analysis.
There is no market-wide investment-property mortgage rate established by these sources. Rates and pricing adjustments change, and a useful comparison requires current, personalized offers with the same scenario, lock period, APR, and points context.
Quick Recap
Questions to ask before choosing
- What loan category is this, and which rules or lender overlays apply?
- How are rent or other property income counted, and what documentation is required?
- What are the total cash-to-close and reserve requirements?
- What will the payment be, and how do rate adjustments or prepayment terms work?
- For a short-term loan, what is the planned payoff source and what is the backup exit?
- For a multiunit owner-occupied loan, what occupancy conditions must I meet?
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
