The best investment property loans will have either low fees and competitive rates or flexible qualification requirements. This will be dependent on your qualifications, as well-qualified borrowers can often get competitive rates, whereas those struggling to meet standard requirements will benefit more from flexible eligibility criteria.
Many of the top lenders will also have a combination of excellent customer service, fast funding speeds, and streamlined loan evaluation processes that may allow for minimal documentation to get funding. Since the characteristics of the best investment property loan will vary depending on your specific needs and circumstances, I’ve selected a handful of loans and lenders that can cater to a wide range of needs.
Here are my picks for the five best investment property loans:
- RCN Capital: Best overall for long-term rentals
- Kiavi: Best for financing a portfolio of rentals
- Visio Lending: Best for vacation rentals
- Rocket Mortgage: Best simple online application experience
- U.S. Bank: Best for traditional banking services
Best Investment Property Loans at a Glance
Estimated Starting APR | Maximum Loan Amount | Required Down Payment | Required Credit Score | Maximum Repayment Term | |
|---|---|---|---|---|---|
 | 6% | $2 million | 20%-40% | 660 | 30 years |
 | 6.75% | Varies | 20% | 660 | 10 or 30 years |
 | 6.5% | $2 million | 20% | 680 | 30 years |
| 6.75% | $3 million | 15%-25% | 620 | 30 years |
 | 7%+ | Varies | 25% or more recommended | 700+ recommended | Up to 30 years |
RCN Capital: Best Overall for Long-term Rentals
 | |
Rates & Terms | |
Estimated Starting APR | 6.50% and up |
Loan Amount | $55,000 to $2 million |
Required Down Payment | 20% to 40% |
Repayment Term | Up to 30 years |
Funding Speed | 30 to 45 days |
Type of Financing | Long-term investment financing |
Qualifications | |
Credit Score | 660 |
1.05x | |
Prior Investment Experience Required | No |
Why We Like RCN Capital
I selected RCN Capital as the best overall lender for investment property loans because it has the ability to offer the lowest starting rates in this guide. Additionally, it can finance a wide range of property types, including 1-4 unit homes, condominiums, townhomes, and planned unit developments (PUDs). RCN Capital also has multiple payment options available, such as hybrid adjustable-rate mortgages, fixed-rate terms, and interest-only repayment plans.
Specific qualification requirements can vary depending on whether you are purchasing or refinancing a property. However, borrowers with higher credit scores generally have lower down payment requirements. One notable requirement though is that regardless of how well qualified you are, properties must have an as-is appraised value of at least $100,000 to be eligible for financing.
While I was particularly impressed with RCN Capital’s long-term financing options, it also has additional programs you can take advantage of. This includes loans for short-term fix-and-flip investors, multifamily properties, new construction financing, and rental portfolio loans.
To learn more or apply, you can visit the RCN Capital website.
Kiavi: Best for Financing a Portfolio of Rentals
 | |
Rates & Terms | |
Estimated Starting APR | 6.75% |
Loan Amount | $500,000 and up |
Required Down Payment | 20% |
Repayment Term | 10 or 30 years |
Funding Speed | As fast as 10 days |
Type of Financing | Rental portfolio loans |
Qualifications | |
Credit Score | 660 |
DTI Ratio | Varies |
Prior Investment Experience Required | No |
Why We Like Kiavi
Kiavi was my pick as the best choice for investors with a portfolio of multiple rental properties. Besides offering competitive rates upfront, terms can get better the larger your portfolio becomes.
In order to be considered for a rental portfolio loan through Kiavi, you’ll need to have at least 5+ properties. By combining financing for properties into a single portfolio, you can simplify your finances by having a single payment apply to all properties. You’ll also still be able to have flexible payment options, including interest-only payments and payment terms of either 10 or 30 years.
Unlike some lenders, a purchase option is not available for its rental portfolio product. You can choose either a rate and term refinance or a cash-out refinance. If you’re looking to finance an individual property rather than a portfolio of multiple properties, Kiavi does offer other loan programs, including fix-and-flip, bridge, and DSCR rental loans. Eligible property types generally include two- to four-unit homes, single-family properties, and planned-unit developments, and applications can be started from the lender’s website.
Visio Lending: Best for Vacation Rentals
| |
Rates & Terms | |
Estimated Starting APR | 6.5% to 8.5% |
Loan Amount | $100,000 to $2 million |
Required Down Payment | 20% |
Repayment Term | Up to 30 years |
Funding Speed | 21 to 45 days |
Type of Financing | Vacation rental mortgage loans |
Qualifications | |
Credit Score | 680 |
DSCR | 1.2x |
Prior Investment Experience Required | No |
Why We Like Visio Lending
I chose Visio Lending as the best option for financing vacation rentals as it can offer competitive rates, flexible loan terms, and easy documentation requirements. Available financing options include purchases, rate-and-term refinances, and cash-out refinances. Its vacation rental loans focus on a property’s cash flow and borrower’s credit. Income is not considered as part of the lender’s evaluation—this tends to lead to an easier application process since you won’t have to provide certain income documents, like tax returns or W2s.
This provider’s vacation rental program is meant to grow with you as an investor. There is no limit on how many properties it can finance, so it’s a good option if you are aggressively growing your investment portfolio. Individual loan amounts range from $100,000 to $2 million and require a downpayment of 20%.
Eligible properties must have a minimum value of $150,000 and be rent-ready. You can finance single-family homes, condos, and townhomes. Properties ineligible for financing include manufactured homes, mobile homes, vacant land, and log homes.
Visio Lending currently offers financing in 38 states and Washington, D.C., To apply, you can contact the provider using its toll-free number. You can also submit an online form requesting a callback.
Rocket Mortgage: Best Simple Online Application Experience
 | |
Rates & Terms | |
Estimated Starting APR | 6.75% and up |
Loan Amount | Up to $3 million |
Required Down Payment | 15% to 25% |
Repayment Term | Up to 30 years |
Funding Speed | 21 to 60 days |
Type of Financing | Conventional and jumbo mortgages |
Qualifications | |
Credit Score |
|
DTI Ratio | 50% |
Prior Investment Experience Required | No |
Why We Like Rocket Mortgage
Rocket Mortgage, formerly known as Quicken Loans, is an excellent lender to consider if you prefer conducting business online. Its digital application process allows you to easily apply online, upload documents, communicate with your loan team, and view your loan status. For these reasons, it made our list for providing the best simple online application experience.
Like many traditional lenders, this lender generally reviews its loan in accordance with Fannie Mae or Freddie Mac guidelines. Eligible property types include single-family homes, multi-unit properties of up to four units, townhomes, and condos. The characteristics of your property, including its location, will determine whether you qualify for a conventional mortgage loan or if you must be reviewed under Rocket Mortgage’s jumbo loan program guidelines.
Required documentation will vary depending on your circumstances and the details of the loan you’re trying to get. However, common documents may include the following:
- Pay stubs, W2s, or 1099s
- Tax returns
- Bank statements
- Letters of explanation for unusual or large bank deposits
- Credit card and loan statements for recently obtained debt
You can visit the Rocket Mortgage website to learn more about available loan options. If you decide to move forward with the process, you can also submit an online application, a process that should take no more than 10 minutes.
U.S. Bank: Best for Traditional Banking Services
| |
Rates & Terms | |
Estimated Starting APR | 7%+ |
Loan Amount | Varies |
Required Down Payment | Not stated, but 25% or more is recommended |
Repayment Term | Up to 30 years |
Funding Speed | Typically 30 to 60 days |
Type of Financing | Conventional mortgage loan |
Qualifications | |
Credit Score | Not stated, but 700+ is recommended |
DTI Ratio | Not stated, but 40% or below is recommended |
Prior Investment Experience Required | No |
Why We Like U.S. Bank
If you’re looking to get a loan from a traditional full-service financial institution, U.S. Bank is a good option to consider. One of the advantages of getting financing from a lender like U.S. Bank is the fact that you can house multiple products and services under the same roof, offering you the ability to simplify your finances.
In addition to offering competitively priced investment property loans, U.S. Bank provides business banking services and various other credit cards, loans, and credit lines. Wealth management and advisory services are also available for both individuals and businesses to take advantage of.
With that being said, one of the potential downsides of working with U.S. Bank is that it tends to have more difficult qualification requirements. As a result, I recommend this as a more ideal fit for those with good credit scores, a history of performing well financially, and at least 12 months of financial reserves.
How I Chose the Best Investment Property Loans
I chose the best loan for investment property usage using the following criteria:
- Interest rates and estimated APRs
- Maximum loan amount
- Repayment options
- Minimum down payment required
- Qualification requirements, such as credit score, DSCR, and DTI
- Funding speed
- Ease of application
- Application and approval speeds
- Amount of required documentation
- Customer reviews and ratings
How to Choose a Loan Provider
When choosing the best investment property loan for you, you should ensure that the rates and terms offered fit your budget, and that the provider can work with your specific real estate investment needs. Consider the following when shopping around for a lender:
- Determine your investment needs. Consider the details of your real estate investment, including how much funding you’ll need, your plans to repay the loan, and the property’s value.
- Review lender qualification requirements. Depending on the terms of your loan and the lender financing it, qualification criteria will vary. Generally, your credit score, time in business, and annual revenue are factors taken into consideration when determining your approval. You should aim to meet the minimum requirements necessary to qualify for the best chances of approval.
- Compare loan costs and terms. Be sure to evaluate the various rates, terms, and fees associated with the lenders you’re interested in. Ensure that they match your budget and investment needs before signing an agreement.
If you are unable to obtain an investment property loan or are simply exploring all of your applicable financing options, here are some alternatives to consider:
- Hard money loans: A hard money loan offers short-term financing that allows you to acquire or fund a property that is in need of repairs. Once repairs are completed, the loan can be replaced with a permanent financing source. These loans tend to be more expensive since there’s a bit more risk involved than traditional mortgage loans. To learn more, see our list of the best hard money lenders for options.
- Portfolio loans: A portfolio loan can provide a bit more flexibility than traditional mortgage loans since not all lenders will offer loan amounts high enough to cover your business needs. This is due to the fact that the participating lender won’t sell their loans on the secondary market, which gives them the ability to have more control over their eligibility requirements. Our roundup of the best portfolio lenders for real estate can help you find an option that fits the bill.
- Owner financing: Owner financing differs from a loan offered by a lending institution and often allows you major flexibility in terms of qualification requirements. The property owner will need to agree to finance the property for you, and it’s recommended you consult an attorney to facilitate the process.
- Commercial real estate (CRE) loans: A CRE loan may be a better option if you’re not looking to invest in a residential property. There are various loan types available, each with differing terms and qualifications. Check out our guide on the best CRE loan rates to learn more.
- Friends and family loan: Instead of a traditional business loan, you can raise money from friends and family to support your investment. While there are tax regulations and applicable interest rates that will need to be taken into account, this is a less formal financing option that can often offer favorable rates and terms.
Frequently Asked Questions (FAQs)
Interest rates will vary depending on the lender you choose and your qualifications. Generally, rates fall anywhere from 5% to 14%, which ranges based on the loan type you’re using to finance your investment property.
There are various ways to get an investment property loan, whether through a bank, credit union, broker, or online lender. Whichever lending institution you choose, you should ensure it offers loan programs specific to your investment needs.
Compared with other types of loans, investment property loans can have specific requirements that may make them more difficult to get. This includes documentation regarding the property, higher down payment requirements, and strong credit and financial history.
Bottom Line
To get the best loan for your investment property, choose a lender offering competitive rates and excellent service. If you plan to use the funds to purchase, refinance, or finance repairs or renovations, an investment property loan may be your best bet. However, you should consider all of your available financing options before proceeding with this route.
