30-yr fixed6.75%+0.0315-yr fixed6.05%+0.00FHA 30-yr6.55%+0.08VA 30-yr6.38%+0.08Jumbo 30-yr6.82%+0.11Updated September 1, 2026
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Your situation

Real estate investor

Investment property loans price higher than primary residences and come in two families: conventional loans that use your personal income, and DSCR loans that use the property's rent.

Run the DSCR numbers

Who this is for

  • Buyers of a first rental or a tenth
  • Owners of short-term rentals
  • Investors who have maxed out the ten-loan conventional limit

How it works, step by step

  1. Conventional investment loans need 15% to 25% down and count 75% of expected rent as income.
  2. DSCR loans qualify the property: rent divided by the payment (principal, interest, taxes, insurance, HOA) should be 1.0 or more, ideally 1.2.
  3. Compare the true cost over your holding period. A higher DSCR rate can still win if it lets you close on the deal.
  4. Portfolio and blanket loans exist for larger holdings.

Pros

  • DSCR loans ignore personal income and the ten-loan limit
  • Cash-out refinance can fund the next purchase
  • Rates are still far below hard money

Cons

  • Investment pricing adds roughly 0.5 to 1 point to the rate
  • DSCR loans often carry prepayment penalties
  • Larger down payments and reserves