Investment property financing runs on two tracks: conventional loans qualified on your income, and DSCR loans qualified on the property’s rental income. Which track wins depends on your portfolio, your tax strategy, and how many doors you already carry. The structure decision — loan type, vesting, how rental income is counted — usually moves returns more than a small rate difference does.
15–25%
Typical down payment range, by property type and program
75%
Share of market rent conventional underwriting typically credits toward qualifying
1.0+
DSCR where the property covers its own payment — the investor-loan benchmark
10
Financed properties possible under agency rules — with the right lender roadmap
Figures reflect current agency and lender guidelines as of August 12, 2026. Conventional investor loans are subject to 2026 conforming limits ($832,750 single-family, most counties).
Conventional generally prices best for your first few doors: 15–25% down depending on property type, qualification on your personal income with 75% of market rent credited from the property. The friction grows with the portfolio — each door adds DTI weight and documentation, and pricing steps up with property count.
DSCR flips the question to the property: does the rent cover the payment? Qualification rests on the ratio, not your tax returns — which preserves your personal borrowing capacity for the next acquisition and sidesteps the self-employment documentation maze entirely. Pricing runs somewhat above conventional; scaling investors usually find the trade worth it around the point conventional paperwork becomes the bottleneck.
Conventional: typically 15% for a single-family rental and 25% for 2–4 units. DSCR: commonly 20–25%. Larger down payments buy better pricing on both tracks — we’ll show you where the tiers break so you can place your cash deliberately.
Yes. Conventional underwriting typically credits 75% of documented market rent against the payment — even without a signed lease, via the appraisal’s rent schedule. DSCR programs use the full rent-to-payment ratio. Either way, the property helps carry itself on paper.
Early portfolio, strong W-2 or clean tax returns: conventional usually prices best. Scaling portfolio, heavy write-offs, or LLC vesting requirements: DSCR earns its premium by preserving your personal capacity and cutting documentation friction. The crossover point is personal — we’ll find yours with actual numbers rather than a rule of thumb.
Agency rules allow up to 10 financed properties, though many lenders cap lower — and pricing steps up as the count climbs. Past ten, or past the paperwork appetite, DSCR and portfolio programs keep the runway going. If you’re building toward a number, tell us — the lender roadmap matters more at scale.
DSCR programs commonly allow LLC vesting at closing; conventional agency loans generally require individual names (investors sometimes transfer title afterward — a move with legitimate due-on-sale and insurance considerations worth discussing with your attorney). If entity vesting is a requirement, it effectively chooses your loan track for you.
Bring us the address and the rent roll — we’ll price both tracks and show you the cash flow math lenders will actually apply. No consultation fees, ever.
Investment property loan requirements vary by program and lender; rental income treatment, reserve requirements, and vesting rules differ and are confirmed in underwriting. Nothing here is tax or legal advice — consult your CPA or attorney on entity and tax questions. This page is educational and is not a commitment to lend; all loans are subject to underwriting and approval.
