Last updated: January 2026
Quick answer
The best mortgage lenders for investment property offer flexible financing based on your goals, property type, and income documentation.
Whether you’re using rental income, business revenue, or bank statements, the right lender will align with your investment strategy and help you scale your portfolio efficiently.
What makes a great investment property lender?
Investment property loans differ from traditional home loans. They’re designed for non-owner-occupied real estate that generates rental income or long-term returns.
Because of this, the best lenders offer loan options tailored to real estate investors, not just homebuyers.
Look for these traits when comparing mortgage lenders for investment properties:
- Loan options for both new and experienced investors
- Non-QM flexibility (e.g., DSCR, bank statement, or P&L loans)
- Competitive down payment options (as low as 15% for eligible purchase transactions)
- Acceptance of various property types: single-family, 2–4 units, STRs
- Ability to close quickly in competitive markets
- Transparent credit score and LTV requirements
- Willingness to lend to LLCs or foreign nationals
How do the best mortgage lenders for investment property differ from traditional banks?
The best mortgage lenders for investment property focus on investor cash flow rather than personal income, often allowing borrowers to qualify using rental income, DSCR, or bank statements instead of W-2s.
These lenders also offer faster underwriting timelines and loan products designed specifically for investors, such as LLC financing, short-term rental loans, and flexible LTV options that traditional banks may not support.
Key types of investment property loans
The most effective lenders offer a wide range of loan types to match different strategies. Here are common options used by real estate investors:
DSCR loan
- Best for: Rental properties
- Key feature: Qualify using property income instead of W2s or tax returns
Bank statement loan
- Best for: Self-employed borrowers
- Key feature: Use 12–24 months of bank activity to prove income
P&L loan
- Best for: Business owners
- Key feature: Use a CPA-prepared profit and loss statement to qualify
Foreign national loan
- Best for: Non-U.S. investors purchasing U.S. property
- Key feature: No U.S. credit or income required; qualify using foreign documentation and down payment strength
Jumbo loan
- Best for: High-value investments
- Key feature: Exceeds conforming loan limits, often with custom terms
HELOC
- Best for: Tapping existing equity
- Key feature: Access equity from a current property for new investments
Conventional loan
- Best for: Simple purchases
- Key feature: Traditional underwriting with stricter income requirements
Each loan type serves a specific purpose. The right lender will guide you to the option that fits your deal structure and personal finances.
Comparing top mortgage lenders for investment properties
Below is a high-level comparison of leading lenders offering investor-friendly mortgages in 2026:
| Lender | Loan Types | Min Down | Min FICO | Notes |
|---|---|---|---|---|
| Chase | Jumbo, DSCR, HELOC | 15% | 680 | Strong national support, but stricter criteria |
| Defy Mortgage | DSCR, bank statement, jumbo, P&L, HELOC | 15%* | 640 | Specializes in non-QM for real estate investors |
| Fairway Independent | Conventional, jumbo, DSCR | 15–25% | 620 | Strong in-person support, fewer non-QM loans |
| Kiavi | DSCR, fix-and-flip, bridge | 20% | Not disclosed | Investor-focused, limited property types |
| loanDepot | Conventional, jumbo, HELOC | ~20% | 620 | Limited transparency on investor-specific terms |
| New American Funding | Conventional, jumbo, bank statement, HELOC | 15% | 620 | Focus on underserved communities |
| Pennymac | DSCR, conventional, jumbo | 15–25% | 620 | Expanding non-QM programs |
| Rocket Mortgage | Conventional, jumbo, refinance | 15% | 640 | Fast digital process, limited non-QM flexibility |
| UWM | DSCR, bank statement | 20% | 620 | Offers financing for large property portfolios |
| Wells Fargo | Conventional, jumbo | 20% | 620–700 | Limited non-QM; paused HELOC originations |
* At Defy Mortgage, 15% down applies to eligible purchase transactions on single-family investment properties. Refinance and cash-out requirements are higher LTVS up to 80% pending FICO, and other factors.
How to choose the best lender for your investment
Every real estate investor has different needs. Use this process to evaluate lenders:
Step 1: Identify your strategy
- Long-term rentals → DSCR or conventional loans
- Short-term rentals → DSCR or bank statement loans
- High-value properties → DSCR, Jumbo or HELOC
- Complex income (not rental income) → Bank statement or P&L
Step 2: Compare eligibility
- Credit score minimum
- LTV or down payment requirements
- Property types accepted (single-family, 2–4 units, STRs)
- Income documentation needed (W2, statements, or none)
Step 3: Evaluate speed and support
- Can they close within 2–3 weeks?
- Is their application process digital or manual?
- Do they offer experienced loan officers familiar with investor needs?
- What are their reviews and customer service like?
A lender that understands real estate investing and your preferred approach can help you secure financing faster and on better terms.
Defy Mortgage: a flexible option for real estate investors
Defy Mortgage was built to serve borrowers with complex financial profiles, including self-employed professionals and property investors.
With over 75 mortgage programs, Defy is one of the few lenders that can accommodate:
- DSCR qualification down to 0.75 or even no ratio
- Up to 85% LTV for purchase transactions on single-family investment properties
- Up to 80% LTV for rate-and-term and cash-out refinances for investment properties
- Bank statement loans and P&L loan products – Up to 90% LTV purchase options
- Foreign national investment loans
- DSCR loan options ranging from $75k-$6M+
- Interest-only options
- 5–9 unit rental property programs
- 24-hour customer service from your personal Mortgage Consultant
Whether you’re buying a new rental, refinancing an existing investment, or expanding your portfolio, Defy offers streamlined approval and expert support nationwide (except in states with licensing restrictions).
You have your investment goals; now you need to find the right loan option. Schedule a consultation or request a custom quote from Defy Mortgage today.
Frequently asked questions: Best mortgage lenders for investment property
Q: What is the minimum down payment for an investment property loan?
Most lenders require 20–25% down, but some offer 15% down for single-family purchase transactions if your credit score and property profile support it.
Q: Can I use rental income to qualify for a loan?
Yes. DSCR loans allow you to qualify using projected or actual rental income instead of personal income. Some lenders accept a DSCR as low as 0.75.
Q: What credit score is needed for an investment property mortgage?
Credit score requirements typically range from 620 to 700, depending on the loan type. DSCR and bank statement loans often require a minimum FICO score of 640.
Q: Do I need tax returns to get an investment loan?
Not always. Non-QM lenders offer bank statement, DSCR, or P&L-based loans that don’t require W2s or tax returns. Instead, they look at alternative forms of income such as rental income for DSCR loans, bank statements for bank statement loans, and business profit-and-loss statements for P&L loans.
Q: Can I buy a rental property in an LLC?
Depends on the lender you choose, but yes. There are lenders that allow you to hold investment properties in LLCs, which can help with liability protection and tax strategy.
Q: What loan is best for short-term rentals?
DSCR loans are popular for short-term rentals, especially if the property has high projected income. Some lenders require proof through a rental market analysis.
Q: Can foreign nationals get investment property loans?
Yes. Lenders, including Defy Mortgage, can offer $3M maximum loan amounts and up to 70% LTV for foreign nationals without a U.S. credit score or Social Security number.
About the Author: Meet Todd Orlando, co-founder and CEO of Defy Mortgage and Defy TPO. With over 20 years of experience in banking and financial services at institutions like First Republic and Morgan Stanley, Todd has dedicated his career to broadening access to lending and revolutionizing the mortgage industry, particularly in the non-QM space.
In 2022, Todd launched Defy Mortgage to provide real estate investors, entrepreneurs, and self-employed individuals with a secure, streamlined, and personalized lending experience tailored to meet their specific needs. He knows firsthand how access to the right mortgage can make or break a project and how today’s borrowers need flexible financial partners and creative lending options designed for their unique needs and lifestyles. Traditional banks are rigid, and their one-size-fits-all approach is outdated. That’s why he created Defy Mortgage — to stay ahead of the curve, set new standards in lending, and deliver personalized, non-traditional solutions for those looking to purchase or refinance.
For the third year running, Todd has been recognized by Inman News for excellence in the mortgage and lending industry, landing on their prestigious Best of Finance list for 2025. He was also honored as a mortgage finance leader in 2023 and 2024 for the same award. His visionary leadership has earned him endorsements from esteemed former colleagues at prestigious institutions across the financial services spectrum.
Beyond his work in finance, Todd is also a co-founder of two software companies in commercial lending and healthcare tech, an active real estate investor, and a husband and father of three. An industry disruptor, Todd is here to redefine what’s possible in mortgage lending.
Mortgage broker itching to elevate client offerings? Check out our TPO business, Defy TPO: https://defytpo.com/
