The best investment property loans will allow you to purchase or refinance residential investment properties. They should have a combination of low rates, long repayment terms, flexible qualification requirements, and excellent customer service. Lenders should also have a simple application process that requires minimal documentation.
If you’re looking for the best loan for investment property usage, here are our seven picks:
- RCN Capital: Best overall for low rates on long-term rental properties
- LendingOne: Best for fix-to-rent rehabilitation loans
- Kiavi: Best rental portfolio lender for borrowers with multiple properties
- PennyMac: Best for conventional mortgages
- Rocket Mortgage: Best simple online application experience
- Visio Lending: Best for vacation rentals
- Lima One Capital: Best for investors seeking large loan amounts
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%-30% | 660 | 30 years |
| 6.25% | 10%-20% | 680 | 1 year or 30 years | |
 | 6.50% | Varies | 20% to 30% | 660 | 10 or 30 years |
 | 5.875% | $2.163 million | 3%-20% | 620 | 30 years |
| 6.75% | $3 million | 15% to 25% | 30 years | |
 | 6.5% | $2 million | 20% | 680 | 30 years |
| 6%-8% | Varies | 20% to 30% | 5, 10, or 30 years | |
Investment properties can be profitable but there are risks involved. You can learn more about whether this is right for you and the other things to consider in our guide on investment property financing.
RCN Capital: Best for Low Rates on Long-term Rental Properties
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Rates & Terms | |
Estimated Starting APR | 6% and up |
Loan Amount | $55,000 to $2 million |
Required Down Payment | 20% to 30% |
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
If you’re looking for some of the best rates available, you should strongly consider RCN Capital. It offers one of the lowest starting rates in our guide behind PennyMac. We chose it as our best pick for low rates on long-term rental properties, as loan proceeds can be used to purchase, refinance, or do a cash-out refinance of a property. That said, borrowers should keep in mind that the best rates will also require you to exceed the minimum qualification requirements.
Apart from low rates and a long repayment term, RCN Capital offers multiple amortization options for its loans. Borrowers can choose from a 30-year fixed-rate mortgage or an adjustable-rate mortgage with an initial fixed term of either five, seven, or 10 years. If eligible, borrowers may also elect an interest-only repayment option.
In addition to the above, other requirements to be eligible for financing include a minimum as-is property value of at least $100,000, although this may vary by geographical location. The minimum down payment will vary based on a combination of your credit score and loan purpose. Borrowers must also have a business entity, as RCN Capital only issues loans to a business. Most states are eligible for financing with the exception of the following:
- Alaska
- Nevada
- North Dakota
- South Dakota
- Vermont
To learn more, you can visit the RCN Capital website to view the company’s contact information or submit a loan application online. There are no upfront fees charged during the preapproval or approval process, although you will be responsible for any third-party fees, such as appraisals or environmental studies, if required.
LendingOne: Best for Fix-to-Rent Rehabilitation Loans
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Rates & Terms | |
Estimated Starting APR | 6.25% and up |
Loan Amount | $75,000 to $5 million |
Maximum Loan-to-Cost (LTC), Loan-to-Value (LTV), and After-Repair Value (ARV) |
|
Repayment Term |
|
Funding Speed | As fast as 10 days |
Type of Financing | Rehab and rental loans |
Qualifications | |
Credit Score | Varies, but 680 is recommended |
Not stated | |
Prior Investment Experience Required | Yes; minimum 1 completed investment property |
Why We Like LendingOne
With LendingOne, you have the ability to turn a rehab into a long-term rental without needing to seek financing elsewhere. It offers a short-term loan to fund the improvements to the rehab and can easily transition you to its own long-term loan once the repairs are completed—making it our top pick for fix-to-rent rehabilitation loans.
With a fix-to-rent rehab loan with LendingOne, you can save time and money by getting these two loans with just a single loan application. Its fix-to-rent loan can be closed in as fast as 10 days, and once you are ready to move to its long-term loan, you can choose between a 30-year fixed-rate mortgage or an adjustable-rate loan with an initial fixed period of five or seven years.
Eligible property types include single-family homes and multiunit properties up to four units. If you visit the LendingOne website, you can get a rate quote in under two minutes. If you decide to move forward, you can also submit an online application. LendingOne gives you personalized service with your own closing agent and loan consultant to work with.
Kiavi: Best Rental Portfolio Lender for Borrowers With Multiple Properties
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Rates & Terms | |
Estimated Starting APR | 6.50% |
Loan Amount | $500,000 and up |
Required Down Payment | 20% to 30% |
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
Borrowers with five or more rental properties should consider Kiavi, which offers rental portfolio mortgage loans that can help simplify your finances while also offering cost savings. With a rental portfolio loan through Kiavi, you can have it structured to have a single payment cover all of your investment homes. Because of this simplicity, we chose it as our best rental portfolio lender for borrowers with multiple properties.
The provider offers options for both a rate and term refinance as well as a cash-out refinance option similar to RCN Capital. You may also have the option to select interest-only repayments if you want to lower your monthly debt obligations.
The more properties you decide to include with a rental portfolio loan, the more benefits you’ll get. You’ll have the ability to get more competitive rates and save time and money on closing costs and other loan fees that you would have to pay if financing properties individually. Property types eligible for financing include two- to four-unit homes, single-family properties, and planned-unit developments. To be approved for a loan, you must also have a business entity.
Visit the Kiavi website to learn more or to submit an application. If you’re looking for other types of financing, Kiavi also offers fix and flip bridge loans and DSCR rental loans.
Pennymac: Best for Conventional Mortgages
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Rates & Terms | |
Estimated Starting APR | 5.875% and up |
Loan Amount | Up to $2,163,800 |
Required Down Payment | 3%-20% |
Repayment Term | Up to 30 years |
Funding Speed | 30 to 60 days |
Type of Financing | Conventional mortgage loan |
Qualifications | |
Credit Score | 620 |
DTI Ratio | 45% |
Prior Investment Experience Required | No |
Why We Like PennyMac
PennyMac offers investment property loans designed to finance one- to four-unit homes being used for income purposes. Loans can be used to purchase or refinance a single-family, townhome, condo, or multiunit property up to four units, which is why we chose it as the best option for a conventional mortgage. It also offers the lowest starting rates of this guide, which makes it competitive with other lenders such as RCN Capital and LendingOne. Keep in mind that rates will vary depending on your business needs and qualifications.
It’s recommended that borrowers have at least six months of reserves, calculated as the number of months of housing payments that can be made if you were to lose your primary source of income. Compensating factors may be needed depending on the overall strength of your loan application, as meeting the minimum qualification requirements above does not guarantee approval.
PennyMac offers loans with repayment terms for both fixed and adjustable rate loans. Most loans are reviewed in accordance with Fannie Mae and Freddie Mac guidelines. Some items, such as the maximum loan amount and loan program, could be impacted by your property location, type, and other loan characteristics.
To view available loan options, visit the PennyMac website. There, you can get an online rate quote in under one min
Rocket Mortgage: Best Simple Online Application Experience
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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 the best simple online application experience.
Like PennyMac, this lender generally reviews its loan in accordance with Fannie Mae or Freddie Mac guidelines. Eligible property types include single-family homes, multiunit properties 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.
Visio Lending: Best for Vacation Rentals
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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
We 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.
Lima One Capital: Best for Investors Seeking Large Loan Amounts
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Rates & Terms | |
Estimated Starting APR | 6%-8% and up |
Loan Amount | Varies; no maximum stated |
Required Down Payment | 20% to 30% |
Repayment Term | 5, 10, or 30 years |
Funding Speed | 10 to 45 days |
Type of Financing | Rental mortgage loans (single-property, short-term, and rental portfolios) |
Qualifications | |
Credit Score | 700 but may vary by program |
DTI Ratio | Varies |
Prior Investment Experience Required | Varies |
Why We Like Lima One Capital
Lima One Capital offers investment property loans for individual properties, rental portfolios, and short-term loans. Depending on the program you choose, no maximum loan amount applies—as long as it’s supported by your credit, your finances, and the property’s expected cash flow. As a result, we’ve chosen Lima One Capital as the best provider for investors seeking large loan amounts.
With its single property investment loans, no personal income requirements apply. Rather, the approval process places a greater emphasis on the property’s expected cash flow, value, and condition. Repayment options are plentiful when it comes to getting a loan with Lima One Capital. In addition to being able to choose from five-, 10-, and 30-year loan terms, you can also select from the following:
- Fixed-rate loans
- Adjustable-rate loans
- Interest-only loans
- Balloon payment options
Lima One Capital also offers other loan programs, including fix and flip, bridge, new construction, and multifamily loans for properties with more than five units.
By visiting the Lima One Capital website, you can learn more about each of its loan products. You can also view the company’s contact information should you wish to speak with a loan representative regarding any questions or concerns you may have. If you decide to pursue a loan with this provider, you can also submit an online application.
How We Chose the Best Investment Property Loans
We 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 property 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.
