Execution path
Conventional Mortgage
Long-term, low-rate financing for stabilized investment properties. The foundation of most buy-and-hold portfolios — when you qualify and the property qualifies.
Investment Property vs. Primary Residence
Investment property mortgages have stricter requirements than primary residence loans. Expect higher rates, larger down payments, and more documentation. The trade-off is the best long-term cost of capital available to investors.
Primary Residence
- — 3–5% down payment possible
- — Best rates available
- — Must be owner-occupied
Investment Property
- — 20–25% down payment required
- — Rate 0.5–1% higher than primary
- — More income documentation
Loan Types for Investors
Conventional 30-Year Fixed
Most common for buy & hold. Predictable payment, lowest long-term cost. Best when rates are favorable. Fannie Mae/Freddie Mac backing — max 10 financed properties.
DSCR Loan
Debt Service Coverage Ratio loan. Qualifies based on property income, not personal income. Great for self-employed investors or those with multiple properties. Slightly higher rates.
Portfolio Loan
Held by the lender rather than sold to Fannie/Freddie. More flexible underwriting. Used for investors with 10+ properties or unusual property types.
ARM (Adjustable Rate)
Lower initial rate that adjusts after a set period. Can make sense if you plan to sell or refinance before the rate adjusts — but adds risk if you're holding long term.
What Lenders Look At
Credit score
Minimum 620 for most; 720+ gets you the best rates
Debt-to-income (DTI)
All debt payments vs. gross income. Most lenders want under 43–45%
Reserves
6 months of mortgage payments in savings, per property
Property condition
Must be habitable and rentable — distressed properties won't qualify
Rental income
75% of gross rent counted toward qualifying income (vacancy factor)
Employment / income history
2 years of consistent income. Self-employed requires 2 years of tax returns
Best For
- —Buy & hold rentals with cash flow
- —Properties in good condition
- —Investors with solid credit and income documentation
- —Long-term holds (10+ years)
- —BRRRR refinance phase
Limitations to Know
- —Fannie/Freddie cap at 10 financed properties
- —Slow approval (30–60 days)
- —Won't work for distressed or non-rentable properties
- —Higher documentation burden
- —Rate sensitivity — timing matters
Questions about qualifying or which loan type fits your deal? Send me your situation and I'll point you in the right direction.
Timing-critical refinance strategy
Balloon, HELOC reset, or investor loan coming due?
If your payoff timeline is closing in, use the dedicated strategy page for seller finance exits, subject-to refinance planning, hard money payoff, and DSCR evaluation.
FAQ
How do I know if refinance is realistic right now?
We look at equity, income documentation, occupancy, seasoning, debts, reserves, property condition, and your timeline—not just today’s headline rate chatter.
Is investment property refinancing harder?
Usually yes versus a primary residence—expect more equity, tighter documentation, and higher scrutiny on rents—but it is still workable when the basics line up.
What if refinance is possible but emotionally premature?
Then we slow down—you should not refinance just because brochures say so—sequencing patience sometimes prevents fees and regret loops.
Does working with Ryan mean committing to a lender immediately?
No. Conversations clarify whether moving forward deserves licensed execution—education comes first.
What is seasoning—and why do lenders care?
Seasoning is how long you have owned the property or documented stabilized rents. It affects how value and income can be treated, which loan types fit, and how aggressive a cash-out can be. Timing mistakes here are costly to unwind.
How is this different from calling a loan officer first?
A loan officer is the right lane when you already know the loan you need. When the situation mixes life timing, occupancy changes, balloons, or long-term hold strategy, pressure-testing sequencing first usually saves wrong-file applications.