What is an investment property mortgage?
An investment property loan finances a home you don't plan to live in, usually a rental. Lenders see more risk on rentals, because if money gets tight, people tend to protect the roof over their own head first. So the requirements are stricter and pricing is usually higher than on a primary home.
What are the typical requirements?
| Requirement | Typical guideline |
|---|---|
| Credit score | 680+ for the best options |
| Down payment | 15% to 25% |
| Reserves | Often about 6 months of payments, more with multiple properties |
| Debt-to-income ratio | Usually 45% or lower on conventional loans |
Guidelines vary by lender and program.
Rates on investment properties are typically higher than on a home you live in, and putting 25% down often improves pricing. The 2026 conforming limit of $832,750 for a single unit applies to investment properties too. Above it, you'd look at jumbo or non-QM options.
How do DSCR loans work?
A debt-service coverage ratio (DSCR) loan qualifies on the property instead of your personal income:
| Example | Amount |
|---|---|
| Expected monthly rent | $2,500 |
| Monthly payment (principal, interest, taxes, insurance, HOA) | $2,000 |
| DSCR ($2,500 ÷ $2,000) | 1.25 |
Example only. Not an offer of credit.
If the ratio is about 1.0 or higher, you can often qualify without tax returns or pay stubs. The trade-off is usually a higher rate and a 20%–25% down payment. More on non-QM options.
Can rental income help you qualify?
On a conventional loan, lenders usually count 75% of the expected rent as income, based on a lease or the appraiser's rent estimate. That can help you qualify for more than your job income alone would allow.
Related guides
Frequently asked questions
How much do you need to put down on an investment property?
Usually 15% to 25% for a single-family rental, depending on the loan type and your credit. More down typically improves your pricing.
What is a DSCR loan?
A debt-service coverage ratio loan qualifies based on the property’s rent compared to its payment. If rent covers the payment (a ratio of about 1.0 or higher), you may not need to document personal income.
Can rental income help me qualify?
Yes. On conventional loans, lenders typically count 75% of the expected rent toward your income, using a lease or an appraiser’s rent estimate.
Can I use an FHA loan to buy a rental?
Not for a standalone rental. But you can buy a 2–4 unit property with FHA if you live in one of the units.
Educational only, not a commitment to lend. Program guidelines, limits, and pricing change, and every loan is subject to underwriting approval. Example numbers are illustrations, not quotes.
Jamil C 
Shantanu K 
Ryan F