Rental homes, multi-family buildings, short-term rentals and fix-and-flips. Stonebridge Home Loans shops 40+ lenders to find the investment property loan that fits your deal and your cash flow, with local loan officers who answer their own phones.
Investment Property Loan Programs
Investment Property Financing, Explained
An investment property loan program helps you buy real estate intended to generate income. This can include long-term rentals, short-term vacation homes, or properties you fix and later flip. When you need this specialized mortgage financing option, you want financial guidance you can trust. At Stonebridge Home Loans, we offer a wide range of programs in Pennsylvania, Florida, and New Jersey to fit your needs best. We know you have many factors to consider, and we’re here to guide you through the process.
18+ Years
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Types of Investment Property Loans
The good news: there’s no single “investor loan.” Some programs qualify you on your personal income, others on the property’s rent alone, and others on your bank deposits or the home’s after-repair value. Picking the right one can mean a lower rate, less paperwork and faster closing. As a mortgage broker with access to 40+ lenders, Stonebridge Home Loans matches each deal with the program that fits it best, whether it’s your first rental or your fifteenth.
Jump to an Investor Loan Type
Conventional Investment Property Loans
Best for: W-2 or established investors with strong credit who want the lowest available rate on 1–4 unit rentals.
Conventional loans that follow Fannie Mae and Freddie Mac guidelines are typically the most affordable way to finance a rental property. You qualify using your personal income, credit and debt-to-income ratio, and lenders can count a portion of the expected rent toward your income. Fixed-rate terms from 15 to 30 years keep your payment predictable while your tenant pays down the balance.
- Property types: single-family homes, condos, townhomes and 2–4 unit buildings
- Typical down payment: about 15% for a single unit, 25% for 2–4 units
- Documentation: tax returns, W-2s or pay stubs, bank statements and a lease or rent schedule
- Keep in mind: cash reserves are usually required, and there’s a cap on how many financed properties you can hold
DSCR Loans (Debt Service Coverage Ratio)
Best for: Investors who want to qualify on the property’s rental income, not their tax returns, and scale beyond conventional limits.
A DSCR loan looks at one main question: does the property’s rent cover its monthly payment? Instead of reviewing your W-2s or tax returns, the lender divides the property’s gross monthly rent by its monthly housing payment (principal, interest, taxes, insurance and any HOA dues). A ratio of 1.0 means the rent covers the payment exactly; many lenders prefer 1.0–1.25 or higher for their best pricing, and some programs allow lower ratios with a larger down payment.
Quick DSCR example: A rental in Bucks County leases for $2,400/month. The full monthly payment (PITIA) is $2,000. $2,400 ÷ $2,000 = a 1.20 DSCR, which means the property produces 20% more rent than it costs to carry.
- No personal income verification: no tax returns, W-2s or pay stubs in most cases
- Close in an LLC: many DSCR programs let you take title in your business entity
- Unlimited scaling: no conventional cap on the number of financed properties
- Typical down payment: often 20–25%, depending on credit and DSCR
Bank Statement & Non-QM Investor Loans
Best for: Self-employed investors and business owners whose tax returns don’t show their true earning power.
If you write off a lot of business expenses, your taxable income can look far lower than what actually hits your account. Bank statement loans calculate your qualifying income from 12 or 24 months of personal or business bank deposits instead. Other non-QM options qualify you using liquid assets (asset depletion) or a CPA-prepared profit and loss statement.
- Income documentation: 12–24 months of bank statements, a P&L or verified assets
- Works for: 1099 contractors, small-business owners, gig workers and retirees with significant assets
- Trade-off: rates are typically higher than conventional, in exchange for flexible qualifying
Have a Property in Mind? Let’s Run the Numbers.
Send us the address and the expected rent. We’ll compare investor programs across 40+ lenders and show you the down payment, rate and cash flow for each one before you make an offer.
Short-Term Rental (Airbnb & VRBO) Loans
Best for: Vacation rentals at the Jersey Shore, in the Poconos or along Florida’s coast.
Short-term rentals can earn more than a traditional lease, but not every lender will count nightly-rental income. Specialized short-term rental loans, most often structured as DSCR loans, can qualify the property using its booking history or a market rent analysis from tools like AirDNA. That lets you buy the property based on what it can realistically earn as a vacation rental.
- Qualify on projected or actual STR income instead of a 12-month lease
- Check local rules first: many shore towns and HOAs restrict short-term rentals, and we’ll help you factor that in
- Second-home option: if you’ll use the property yourself part of the year, a second-home loan may offer better terms
2–4 Unit "House Hacking" Loans (FHA, VA & Conventional)
Best for: First-time investors who want to live in one unit and rent out the others.
House hacking is one of the most affordable ways to start investing. When you buy a duplex, triplex or fourplex and live in one of the units, it counts as your primary residence, so you can use owner-occupied financing with a much smaller down payment than a pure investment loan. Rent from the other units can help you qualify and offset your monthly payment.
- FHA: low down payment options with flexible credit guidelines
- VA: eligible veterans and service members may qualify with no down payment
- Conventional: reduced down payment options are available for owner-occupied 2–4 unit homes
- Requirement: you must move in and generally live there for at least 12 months
New to home buying? Start with our First Time Home Buyer Guide
Fix-and-Flip Loans
Best for: Investors buying distressed properties to renovate and resell, or to rehab and hold (BRRRR).
Fix-and-flip loans are short-term financing, usually 6 to 24 months, designed for speed. Instead of focusing only on the purchase price, lenders look at the property’s after-repair value (ARV) and can often finance part of the renovation budget, releasing funds in draws as work is completed. Many are interest-only, keeping carrying costs low while you renovate.
- Fast closings to compete with cash buyers on auction and off-market deals
- Purchase plus rehab funding in a single loan
- Exit strategy: sell the property, or refinance into a long-term DSCR or conventional loan once it’s rented
Investment Property Cash-Out Refinance
Best for: Owners with built-up equity who want capital for their next down payment or renovations.
Your rentals may be sitting on equity you can put to work. A cash-out refinance replaces your current mortgage with a larger one and pays you the difference, which you can use as a down payment on another property, to fund improvements that raise rents, or to pay off higher-interest debt. Conventional, DSCR and non-QM cash-out options are all available, and a rate-and-term refinance can lower your payment and boost cash flow.
- Typical maximum: investors can usually borrow up to roughly 70–75% of the property’s current value
- BRRRR friendly: refinance a renovated rental to recover your initial investment
Learn more about refinancing with Stonebridge.
What You'll Need to Get Pre-Approved
Having these ready speeds up your approval and helps your offer stand out. Your loan officer will give you a checklist built for your specific program.
About You
Photo ID and Social Security number
Income documents (or bank statements for non-QM)
Asset statements showing down payment and reserves
LLC documents if buying in an entity
About the Property
Property address and purchase contract
Current leases or expected market rent
Schedule of real estate you already own
Rehab budget and scope (for fix-and-flip)
Want to see what your monthly payment could look like first? Try our mortgage payment calculator or review the Stonebridge home loan process.
Benefits of Investment Property Loan Programs with Stonebridge Home Loans
When you choose Stonebridge Home Loans to guide you with your investment property loan program, you can count on our team for fast processing and more. We offer advantages that other companies don’t.
More Loan Options
Banks offer their own products. We compare 40+ lenders, including conventional, DSCR and non-QM investor programs, to find the right structure for each deal.
Speed That Wins Deals
Our streamlined process can close purchase loans in as little as 10 days, so your offer competes with cash buyers.
Local, Real People
Our team lives and works in the communities we serve. Call or text us, including on weekends, and talk to a real loan officer who knows the local rental market.
"I worked with Derick Pagliaro on a mortgage for an income property that we have purchased in NJ. He made the entire process very easy and understandable."
— Brian R., Google Review
Investment Property Loan FAQs
How much do I need to put down on an investment property?
Most investment property loans require more down than a primary-residence mortgage. Conventional investor loans typically start around 15% for a single-unit home and 25% for 2–4 units, while DSCR loans often require 20–25%. If you live in one unit of a 2–4 unit property, FHA, VA or conventional owner-occupied loans may allow a much smaller down payment.
What credit score do I need for an investment property loan?
Requirements vary by program, but conventional investor loans generally look for a 620 minimum, with the best pricing reserved for higher scores. DSCR and non-QM lenders set their own minimums. A Stonebridge loan officer can review your credit and tell you exactly where you stand.
Can I use rental income to qualify for a mortgage?
Yes. Conventional lenders can count a portion of the property’s lease or market rent toward your income, and DSCR loans qualify you almost entirely on the property’s rent. If you already own rentals, income reported on your tax returns can also be used.
What is a DSCR loan and how is it calculated?
A DSCR (debt service coverage ratio) loan qualifies you based on the property’s cash flow rather than your personal income. It’s calculated by dividing the monthly rent by the monthly payment including principal, interest, taxes, insurance and HOA dues. For example, $2,400 in rent divided by a $2,000 payment equals a 1.20 DSCR.
Are interest rates higher on investment properties?
Typically, yes. Lenders price rental properties slightly higher than primary residences because they carry more risk. Your rate depends on your credit, down payment, property type and loan program. That’s why we compare offers from 40+ lenders to find you competitive pricing.
Can I buy an investment property in an LLC?
Many DSCR and non-QM programs allow you to close in an LLC or other business entity, which some investors prefer for liability and organizational reasons. Conventional loans generally require you to borrow as an individual. Talk with your attorney or tax advisor about the right ownership structure for you.
How many investment properties can I finance?
Conventional loans limit how many financed properties you can own, and requirements get stricter as you add more. DSCR, portfolio and blanket loans don’t have the same cap, which is why growing investors often shift to those programs as their portfolio expands.
Which states does Stonebridge Home Loans lend in?
Stonebridge Home Loans is licensed in Pennsylvania, New Jersey and Florida. Our office is at 1148 Street Road in Southampton, PA, and we help investors throughout Bucks County, the Philadelphia suburbs, New Jersey and Florida. View our state licenses.
Get Your Free Investment Property Rate Quote
No credit impact. Tell us a little about your deal and a Stonebridge loan officer will reply within one business day with the investor programs that fit.
If you are looking for more information on investment property loan programs, the team at Stonebridge Home Loans is here to help. For over 18 years, we have helped investors find the program that suits them best. Reach out to us online to schedule an appointment.
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