Buying investment property requires different financing than primary residences. Here are the best loan options for rental property buyers in 2026.
Investment Loan Options
- Conventional: 15-25% down, 6.5-7.5% rate, best for first 1-4 properties
- DSCR: 20-25% down, 7-8.5% rate, no income verification
- Portfolio: local bank relationships, flexible terms
- Hard money: 25-30% down, 10-14% rate, fast close for flips
- Seller financing: negotiate directly, creative terms possible
Most investors start with conventional loans for their first 1-4 properties, then transition to DSCR or portfolio lending as they scale. The key is building banking relationships early.
