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    3. Investment Property Loans
    Investment

    Investment Property Loans

    "Build your rental portfolio."

    Financing for 1-4 unit rental properties. Conventional loans with income documentation, or DSCR loans without. Choose based on your situation.

    15-25%

    Min Down

    620+

    Min Credit

    Up to $2M

    Max Loan

    Get StartedTalk to an Investment Specialist
    Last reviewed: January 2026 · CMS Mortgage Editorial Team

    Is This Loan Right for You?

    This Loan is Perfect If You...

    • Buy-and-hold rental property investor
    • Building a rental portfolio over time
    • Can document income (or prefer DSCR route)
    • Purchasing 1-4 unit investment properties
    • Want flexibility between conventional and DSCR

    This Might NOT Be Right If...

    • Buying a primary residence (use owner-occupied programs)
    • Looking for commercial 5+ unit financing
    • Fix-and-flip investor (see Fix-and-Flip Loans)
    • Vacation/second home (different programs available)
    • Need to close in less than 21 days

    Investment Property Loans Benefits

    Everything you need to know about your benefits

    1-4 Unit Properties

    Finance single-family rentals, duplexes, triplexes, and fourplexes

    Two Qualification Paths

    Choose conventional (with income docs) or DSCR (property-based)

    Build Your Portfolio

    Scale from one rental to a full portfolio with multiple loan options

    Up to $2M Financing

    High loan limits for quality investment properties in competitive markets

    Investor-Focused Terms

    Loan structures designed for investment returns, not just homeownership

    DSCR Option Available

    No personal income docs needed—let the property rent qualify the loan

    How It Works

    Your path to homeownership in just a few simple steps

    Find Your Investment Property

    Identify a 1-4 unit property with strong rental potential.

    Choose Your Loan Path

    Use conventional (with income docs) or DSCR (property income only).

    Get Pre-Approved

    Lock in your rate and show sellers you are a serious investor.

    Close and Cash Flow

    Complete your purchase and start collecting rent.

    Find Your Investment Property

    Identify a 1-4 unit property with strong rental potential.

    Choose Your Loan Path

    Use conventional (with income docs) or DSCR (property income only).

    Get Pre-Approved

    Lock in your rate and show sellers you are a serious investor.

    Close and Cash Flow

    Complete your purchase and start collecting rent.

    Types of Investment Property Loans

    Choose the option that fits your situation

    Conventional Investment

    Use personal income to qualify. Lower rates with traditional documentation. Max 10 financed properties. Rental income helps qualification.

    Learn more

    DSCR Investment

    Property income qualifies the loan—no personal income documentation. Unlimited properties. Slightly higher rates for maximum flexibility.

    Learn more
    Important to Know

    Things to Consider

    A reverse mortgage is a significant financial decision. Here's what you should understand before proceeding.

    Not for Primary Residence

    Investment property loans are for non-owner-occupied properties. Primary residence and second homes have different (often better) terms.

    Higher Down Payment

    Investment properties require 15-25% down vs. 3-5% for primary residences. This reduces lender risk on non-owner-occupied properties.

    Property Limits (Conventional)

    Conventional lenders typically cap financed properties at 10. Beyond that, DSCR loans offer unlimited property financing.

    Rental Income Counts

    75% of expected rental income can offset your debt-to-income ratio for conventional loans. DSCR uses 100% of actual/projected rent.

    HUD-approved counseling is required to ensure you fully understand these factors before proceeding.

    Loan Details

    Documentation Required

    • Standard income documentation (conventional path)
    • No income docs needed (DSCR path)
    • Property appraisal with rental analysis
    • Lease agreements (if property is occupied)
    • Reserves: 6+ months per property

    Eligible Property Types

    • Single-family investment homes
    • Duplexes (2 units)
    • Triplexes (3 units)
    • Fourplexes (4 units)
    • Condos (if investment-eligible)

    Additional Info

    • Must be non-owner-occupied
    • Title must be in investor name or LLC
    • Short-term rentals may require DSCR
    • HOA restrictions on rentals may apply

    Conventional vs. DSCR Investment Loans

    FeatureConventionalDSCR
    Income DocumentationRequired (W-2s, tax returns)Not required
    Qualification MethodPersonal debt-to-incomeProperty rental income
    Interest RatesLower ratesSlightly higher rates
    Max Financed Properties10 propertiesUnlimited
    Credit Score Minimum620+660+
    Down Payment15-20%20-25%
    Best ForW-2 investors starting outExperienced investors scaling up

    * Rates and terms subject to change. Contact us for current offers.

    FAQ

    Frequently Asked Questions

    Common questions about Investment Property Loans

    Last updated: May 12, 2026

    What is the difference between conventional and DSCR investment loans?

    Conventional investment loans use your personal income (W-2s, tax returns) to qualify, with lower rates but a max of 10 financed properties. DSCR loans use the property rental income to qualify—no personal income docs needed—and allow unlimited properties with slightly higher rates.

    How much down payment is required for investment properties?

    Investment properties require 15-25% down payment, depending on the loan type and your credit profile. Conventional typically requires 15-20% for 1-unit properties, while DSCR usually requires 20-25%.

    Can I use expected rental income to qualify?

    Yes. For conventional loans, lenders typically count 75% of expected rent toward your income. For DSCR loans, the property rent must cover the mortgage payment (typically 1.0x DSCR or higher).

    With conventional loans, most lenders cap at 10 financed properties. DSCR loans have no property limit—you can finance as many as the properties cash flow supports.
    DSCR loans commonly allow LLC ownership. Conventional investment loans typically require personal ownership, though you may transfer to an LLC after closing (check loan terms).
    Short-term rentals often require DSCR financing since income verification is more complex. Some DSCR lenders specialize in STR properties and can use projected Airbnb income.
    Compare all loan types — Read our comprehensive mortgage guide
    Read the Compare GuideSee how Investment Property Loans stacks up against other mortgage options
    Compare All Programs Side-by-SideDrop Investment Property Loans next to up to 2 others and compare requirements line by line

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    We'll notify you instantly when rates drop to your target.

    Get Started with Investment Property Loans See Today's Rates
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    Ready to Build Your Rental Portfolio?

    Let us find the right investment loan for your next property

    Get StartedTalk to an Investment Specialist

    Or call us directly: (757) 558-2603

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