Conventional Investment Loans

Conventional investment loans are not backed by the government and typically conform to standards set by Fannie Mae and Freddie Mac. These loans offer flexible terms and can finance a variety of property types. Conventional loans usually require a higher credit score and a larger down payment compared to loans for primary residences. They are ideal for investors seeking long-term rental properties or flipping homes.

DSCR Loans

DSCR (Debt-Service Coverage Ratio) loans focus on the income-generating potential of the property rather than the borrower’s personal income. The DSCR is calculated by dividing the property's annual net operating income by its annual debt service. This type of loan is ideal for investors with multiple properties or those with complex income situations. DSCR loans generally offer more straightforward qualification criteria and can provide higher loan amounts based on the property's cash flow.

Bank Statement Loans

Bank statement loans are designed for self-employed borrowers or those with non-traditional income sources. Instead of relying on traditional income verification methods like W-2 forms and tax returns, lenders use the borrower's bank statements to assess their income. This type of investment loan is ideal for investors who have a steady flow of income but may not have traditional employment documentation.

Portfolio Loans

Portfolio loans are held by the issuing lender and are not sold on the secondary market. This allows for more flexible terms and underwriting criteria. Portfolio loans are suited for investors with unique financial situations or those looking to finance multiple properties under a single loan program.

Hard Money Loans

Hard money loans are short-term loans provided by private lenders and are typically used for fix-and-flip projects. These loans are asset-based, meaning they focus more on the property's value than the borrower's creditworthiness. Hard money loans usually come with higher interest rates and are suitable for investors looking for quick funding with fewer qualifications.