Investment property
An investment property loan finances a home of up to four units that you rent out. Lenders ask for a larger down payment and more reserves than on your own home, and some qualify it on the rent.
Investors buying or refinancing a rental home or a building of up to four units.
What a lender will ask for
- A larger down payment than on a home you live in.
- Cash reserves after closing, measured in months of payments.
- Income a lender can verify. With some lenders, the property's rent can carry the loan instead of your personal income.
- Leases, or a rent estimate from the appraiser, so the lender can see what the property earns.
- A credit history the lender reviews.
What it offers
- Conventional loans and loans qualified on rent, compared side by side.
- Qualifying on the property's rent can help an investor whose personal income, on paper, tells only part of the story.
- Financing for single houses and small buildings of up to four units alike.
What to weigh up
- Rates are usually higher than for a home you live in.
- Loans qualified on rent often cost more again, and some carry a prepayment penalty.
- Vacancies and repairs are yours to cover, and the payments are due regardless.
- A building of five or more units is a commercial loan, set out on the commercial loans page.
Related loan programs
- Conventional loanBuyers and homeowners with steady, documented income and a good credit history.
- Self-employed borrowersBusiness owners, freelancers and contractors whose tax returns do not show the full picture of what they earn.
- Commercial loansBusiness owners and investors buying, refinancing or building commercial property, including apartment buildings of five or more units.
Start with a pre‑qualification request
Tell us what you want to do and where, and we come back with options compared across multiple wholesale lenders. A pre-qualification request starts it, and nothing is a commitment until a lender has reviewed your file.