Conventional Investment-Property Loans
Buy or refinance a rental property using documented income, credit and eligible rental income. Explore conventional financing for a single rental home or a property with 2–4 units.
Explore My Investment-Property Options →Tell us about the property, rental plans, and financing goals.
What Is a Conventional Investment Property Loan?
Conventional investment-property loans finance eligible rental homes. The options described here follow conforming loan requirements, including limits based on the property’s county and unit count.
Your loan officer reviews your documented income, monthly debts, credit, assets and eligible rental income. Rental income is not automatically counted dollar for dollar, and buying a rental does not mean the property must qualify using a DSCR loan.
Investors qualifying with a complete financial picture.
Conventional investment financing may fit borrowers using documented income and eligible rents to support a rental-property purchase or refinance.
Start with these questions:
- How many units does the property have?
- What rental use is planned?
- What income and existing obligations do you have?
- What funds can you contribute?
Conventional Investment-Property Highlights
- Loan amount
- Up to the applicable conforming loan limit for the property’s county and number of units. Ask us to confirm the limit for your property.
- Credit score
- As low as 620 on selected options, subject to automated underwriting, lender requirements and your complete financial profile.
- Down payment / equity
- Purchase options with as little as 15% down for one unit or 25% down for 2–4 units. Refinance equity requirements vary. Closing costs, prepaid items and required reserves are separate.
- Occupancy
- Investment / rental property.
- Property types
- Eligible single-family homes, 2–4 unit properties and qualifying condos. Property condition and condo-project requirements apply.
- Loan purposes
- Purchase, rate-and-term refinance and cash-out refinance, subject to transaction requirements.
- Rate structure
- Fixed-rate and ARM options. ARM rates and payments can change after the initial fixed period.
- Interest-only
- Not available on the conventional options described here.
- Amortization / repayment
- Fully amortizing fixed-rate options include 10, 15, 20, 25 and 30 years, with selected flexible terms. ARM repayment terms depend on the program.
- LLC closing
- Not available. Conventional loans close in eligible individual borrowers’ names.
- Mortgage insurance / reserves
- Mortgage insurance may apply with limited equity or a smaller down payment. Reserve requirements depend on the loan and your other financed properties.
- Available states
- Michigan, Florida and California, subject to program and property eligibility.
Highlights describe separate financing paths. Minimum credit scores, lowest down payments, loan limits, and property features may not be available together. Subject to underwriting, valuation, rental documentation, mortgage insurance, and other program requirements.
Explore My Investment-Property Options →Conventional investment financing or DSCR?
The right starting point depends on your income, property and ownership plans.
| Consideration | Conventional investment | DSCR |
|---|---|---|
| How you qualify | Documented personal income, debts, credit and assets are reviewed, along with eligible rental income. | The property’s rental income is central to qualification. Credit, funds and other program requirements still apply. |
| Rental income | Eligible rents may help, but the amount counted can differ from gross rent. Your rental history and supporting documents matter. | The lender reviews rental income relative to qualifying property expenses under the selected program. |
| Closing in an LLC | Not available. Eligible individuals close the loan. | May be available, subject to the program and entity requirements. |
Neither path is automatically the better deal. Compare the actual costs, cash required and ownership requirements for your plans.
Investment Property Purchase and Refinance Options
Purchase a rental
Explore financing for an eligible single-family rental, duplex, triplex or fourplex.
Refinance an investment
Review a new rate or repayment term and compare the costs with your current mortgage.
Access eligible equity
Ask whether cash-out refinancing can support your goals and how much equity must remain.
What We Review for Investment Property Loan Approval
- Property units, condition, occupancy, and rental plans.
- Income, leases, obligations, and existing properties.
- Credit, eligible funds, and required reserves.
- Purchase or refinance goals and ownership structure.
Investment Property Loans in Michigan, Florida and California
Explore standard conventional options in California, Florida, and Michigan.
Program and property eligibility apply.
Conventional Investment-Property FAQs
What is conventional investment-property financing?
It is financing for an eligible rental property, based on your income, credit, assets, and overall finances.
How is it different from DSCR financing?
Conventional loans review your personal finances and eligible rental income. DSCR loans use a different property-income approach.
How much down payment is required?
Selected purchases allow as little as 15% down for one unit or 25% for 2–4 units. Closing costs and required funds are additional. Ask us which options fit.
What credit score do I need?
Selected options allow scores as low as 620, subject to underwriting and lender requirements. Reach out so we can review your full scenario.
What loan amounts are available?
Loan limits depend on the property’s county and number of units.
Can rent help me qualify?
Yes. Eligible rent may help, but the amount used can differ from the lease rent. Your documents and rental history matter. We can explain what may count.
Can I buy a duplex, triplex, or fourplex?
Yes. Eligible 2–4 unit investment properties can qualify.
Can I refinance or take cash out?
Yes. The amount you can take out depends on your available equity and qualification.
Can I close in an LLC?
No. Closing in an LLC is not available for conventional loans. Ask us about other options if LLC ownership is important to you.
Are fixed rates, ARMs, or interest-only payments available?
Fixed-rate and ARM options may be available. Interest-only payments are not available under the options described here.
Can I finance a short-term rental or non-warrantable condo?
Condo projects must meet the selected conventional program’s requirements. Short-term rental plans need a closer review. Reach out to compare alternatives if the property does not fit.
Will I need reserves or mortgage insurance?
You may. Required reserves and mortgage insurance depend on the loan, your down payment or equity, and other financed properties. We can review what applies.
Where are these options available?
California, Florida, and Michigan, subject to program and property eligibility.
What happens after I share my scenario?
A licensed PMF loan officer will review your goals and help identify options. An inquiry is not an approval.
Have a rental property in mind?
Let's review your scenario and the available financing paths.
Explore My Investment-Property Options →Still comparing?
Program availability and terms depend on your complete scenario and underwriting. This is not a commitment to lend. An inquiry is not an approval.