Investment loans price differently, require more down, and judge the property as much as the borrower. Plan for all three.
Investment property financing sits a tier above owner-occupied pricing, generally requires 15–25% down, and expects reserves in the bank after closing.
Two ways to qualify
Agency financing counts your personal income and debts, including the new payment offset by a portion of market rent. DSCR financing looks primarily at whether the property's rent covers its own debt service, which keeps your personal DTI out of the equation.
- Agency: lowest pricing, full income documentation, DTI-limited
- DSCR: property-qualified, faster for portfolio builders, higher rate
- Both: expect reserves of six months or more per property
Underwrite the deal, not the dream
Real returns account for vacancy, management, maintenance reserve, and capital expenditures. A property that breaks even on paper loses money in practice. Model the payment in the calculators and add 10% for vacancy plus 8% for management, even if you self-manage.
Scaling from equity
Most second and third purchases are funded from existing equity. Compare HELOC versus cash-out before you pick a source of funds, then map the plan with me.
Programs mentioned
- Investment Property
Financing that scales with the portfolio.
- Cash-Out Refinance
Put built-up equity to work.
Keep reading
- Debt-to-Income Explained: The Number That Decides Your Approval
How underwriters calculate DTI, which debts count, and the fastest levers to move it before you apply.
- HELOC vs Cash-Out Refinance: Which Tool Fits the Job
If your first mortgage rate is low, refinancing to access equity can be the expensive option. A second lien is often better.
- How a Mortgage Closes in 15 Days: The Behind-the-Scenes Timeline
A day-by-day view of what happens between application and signing — and the three things that cause every delay.
- Rate Locks, Float-Downs, and When to Commit
Locking is a risk decision, not a prediction. Here's how to make it deliberately instead of by accident.