Common challenges
Conventional loans cap you at 10 financed properties and count your rental income only after tax-return history. Investor programs approve the deal instead.
Programs that fit
DSCR Loans
A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).
Fix and Flip Loans
A fix and flip loan is short-term (usually 12–18 months), interest-only financing that covers most of a distressed property’s purchase price and up to 100% of renovation costs, repaid when you sell or refinance.
DSCR Cash-Out Refinance
A DSCR cash-out refinance replaces the loan on a rental with a larger one, sized to the property’s value and qualified on its rent, and pays you the difference in cash.
Bridge Loans
A bridge loan is short-term (usually 6–24 months) investor financing secured by real estate that “bridges” you from a purchase to a sale or long-term refinance.
Portfolio & Blanket Loans
A blanket (portfolio) loan finances several investment properties under one note, one closing and one monthly payment, with release clauses that let you sell individual properties.
Short-Term Rental (Airbnb) DSCR Loans
A short-term rental DSCR loan qualifies a vacation rental on its nightly-rental income, using 12 months of booking history or a third-party projection such as AirDNA, instead of a long-term lease.
Tips before you apply
- Close in an LLC from the start if you plan to scale.
- Keep 6+ months of reserves per property for the strongest pricing.
- Order your rent schedule with the appraisal on vacant properties.
FAQ
What is the best mortgage for real estate investors?
It depends on your documentation and goal. The programs that most often fit are DSCR Loans, Fix and Flip Loans, DSCR Cash-Out Refinance, Bridge Loans, Portfolio & Blanket Loans, Short-Term Rental (Airbnb) DSCR Loans.