Complete Investment Property Loan Guide
Written by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
An investment property loan finances a home you rent out rather than live in. Lenders treat these as higher risk, so they require larger down payments and charge slightly higher rates than primary-residence loans.
This guide covers conventional investor loans, DSCR loans that qualify on rental income, down payment rules, and how Florida investors scale a portfolio. Mortgage Capital, NMLS# 1859012, finances rentals across Florida's strongest rental markets.
Conventional investment loans
Conventional loans for a single rental property typically require 15% to 25% down, with the best pricing at 25%. You qualify on your personal income and debts, and lenders count a portion of expected rent.
There is a cap on how many financed properties one borrower can have through conventional channels, usually ten. Beyond that, investors move to portfolio or DSCR financing.
DSCR loans for investors
A DSCR loan qualifies on the property's cash flow rather than your personal income. If the rent covers the mortgage payment, taxes, and insurance, the loan can close without tax returns or job verification.
DSCR loans are the engine of portfolio growth in Florida. They let investors keep buying without their personal debt-to-income ratio becoming the bottleneck.
Down payment and reserves
Expect 20% to 25% down on most investment loans. Lenders also want reserves, often six months of payments per property, to cover vacancies and repairs.
Short-term rental properties in Florida tourist markets may face stricter terms, so confirm the loan allows your intended use before you write an offer.
Calculating cash flow
Before you buy, run the numbers: rent minus mortgage, taxes, Florida insurance, HOA, vacancy, and maintenance. Coastal insurance can erase thin margins, so price it accurately.
A property that barely breaks even on paper can still build wealth through appreciation and loan paydown, but know which strategy you are betting on going in.
Scaling a Florida portfolio
Many investors start with a conventional loan, then switch to DSCR financing once they hit the financed-property cap or want to qualify on the asset alone.
Strategies like house hacking, where you live in one unit of a small multifamily, let you use low-down-payment owner-occupied financing to begin investing.
Complete Investment Property Loan Guide: step by step
Frequently asked questions
How much down payment for an investment property?
Usually 20% to 25%. Conventional allows 15% on a single-family rental with mortgage insurance, but 25% gets the best pricing.
What is a DSCR loan?
An investor loan that qualifies on the property's rental cash flow instead of your personal income, requiring no tax returns or job check.
Can I count rental income to qualify?
Yes. Conventional loans count a portion of market or actual rent, and DSCR loans qualify entirely on the property's income.
How many investment properties can I finance?
Conventional financing caps at about ten financed properties. Beyond that, investors use DSCR or portfolio loans.
Are rates higher on investment loans?
Yes, typically a fraction of a percent to a point higher than primary-residence rates, reflecting the added risk.
Do I need reserves for investment loans?
Usually yes, often six months of payments per property, to cover vacancies and repairs.
Can I use an investment loan for a short-term rental?
Sometimes, but terms can be stricter. Confirm the program allows short-term rental use before you buy.
What is house hacking?
Living in one unit of a two-to-four-unit property while renting the others, which lets you use low-down owner-occupied financing.