In 2025, small-scale investors are expected to account for 25% of all home purchases, solidifying their position as a growing force in the US housing market. If you’re one of those “mom-and-pop” investors, partnering with the best investment property lenders is crucial to capitalize on your growing prospects.
At Defy Mortgage, we specialize in catering to the unique needs of real estate investors, self-employed workers, and other individuals with unconventional incomes. Each of our 75+ non-traditional mortgage options can be tailored to fit every situation. Whatever your investment goals, we can craft a solution that sets you on track.
In this article, we’ll cover:
- Our top 10 picks for the best investment property lenders in 2025.
- Key criteria we used, including customer reviews, loan product variety, audience focus, and brand reputation.
- What makes each lender stand out for real estate investors.
- How to determine which lender is the right fit for your investment strategy.
Let’s jump right in.
Best Investment Property Loans at a Glance
| Lender | Rates | Min down payment | Typical min credit score |
| Defy Mortgage | Varies by product. Reach out to us for direct pricing. | 10% | 620 |
| Rocket Mortgage | 30-yr jumbo: 5.75%30-yr fixed (purchase): 6.625%30-yr refinance: 6.125% | 15% | 620 |
| Wells Fargo | 15-yr fixed: 5.25%30-yr fixed: 6.25% | Not disclosed | Not disclosed |
| Pennymac | 15-yr fixed: 5.25%30-yr fixed: 5.99%30-yr Jumbo: 5.75% | As low as 15% for single-family investment, 25% for 2–4 units. | 620 |
| New American Funding | 15-yr fixed: 5.25%30-yr fixed: 5.75% | 15% | 620 |
| Kiavi | 30-yr fixed: 6.25% | 20-30% | Not disclosed |
| United Wholesale Mortgage (UWM) | Not disclosed | 20% | 620 |
| Fairway Independent Mortgage | Not disclosed | 15% for single-family 25% for 2–4 units | 620 |
| loanDepot | Not disclosed | Not disclosed | 620 |
| Chase | Not disclosed | 20% | 660 |
The rates above are the lowest possible given 20% down and 720+ FICO, as of September 10, 2025.
What Is an Investment Property Loan?
An investment property loan is any loan used to purchase investment properties like single-family homes, two- to four-unit multi-family homes, condos, vacation homes, and short-term rentals. The best investment property lenders offer a wide variety of financing options, from DSCR loans and jumbo loans to asset depletion loans and HELOCs.
The Top 10 Best Investment Property Lenders of 2025
Securing the right financing can make or break your real estate investment strategy, so choosing the right lender is crucial. To help you make that choice, here are our top 10 best investment property lenders of 2025, in no particular order:
Defy Mortgage
Defy Mortgage is a non-bank lender with a simple, clear mission: to empower dreams, enrich lives, and elevate the mortgage experience for non-traditional borrowers, including self-employed individuals, including but not limited to small business owners, investment property owners, entrepreneurs, 1099 workers, hourly wage earners and contract workers, STR real estate investors, and more.
Defy offers greater flexibility when it comes to lending requirements and criteria with several product options, such as:
- Bank statement loans: Allow you to use business or personal bank statements to qualify.
- P&L loans: Similar to bank statement loans, except these use business profit-and-loss statements instead of bank statements.
- DSCR loans: Qualify for a home loan using rental income as low as 75% of what you need to meet your monthly mortgage payments.
- Jumbo loans: Provide loan amounts exceeding conforming loan limits, allowing investors to access luxury properties.
- Home equity lines of credit (HELOCs): Allow homeowners to tap into their home’s equity for investment purposes.
Since 2022, Defy has been empowering dreams and enriching lives by providing alternative mortgage solutions, and they have no plans of slowing down. With over 75+ customizable lending options to fit your unique needs, and a dedication to a simple loan process, fast pre-approvals, and flexible lending options, it’s no wonder Defy sports an almost perfect rating on Google reviews. Being self-employed shouldn’t and doesn’t make you less qualified for a mortgage. When others say no, Defy says yes.
Rocket Mortgage
Rocket Mortgage offers investment property loans with down payments as low as 3% for the conventional options across all 50 US states. However, they have loan minimums depending on the property type, and their jumbo loan options have a maximum amount of $2.5 million.
Loan Types Offered:
- Conventional (non-owner-occupied) investment loans
- Jumbo loans
- Cash-out refinance
- Home equity loans
- Bridge loans
Minimum Down Payment: ~15% for single-unit investment; higher for multi-units (commonly 20–25%).
Credit Score Range: 620+ baseline; ~680+ if you want the 15% down tier; HELOAN eligibility typically 680+.
Pros:
- Fast, end-to-end digital process
- Multiple jumbo options
Cons:
- HELOCs not currently offered
- Stricter underwriting for investment loans
Wells Fargo
An established bank, Wells Fargo offers commercial real estate loan services for individual borrowers, institutional investors, financial institutions, internally recognized investment banks, and other third-party investment groups.
Loan Types Offered:
- Conventional loans
- Jumbo loans
Minimum Down Payment: 20%+
Credit Score Range: Conventional investor loans often start near 620+, jumbo/private deals commonly expect 680–700+
Pros:
- Deep conventional CRE/multifamily capabilities.
- In-person private-bank support.
Cons:
- Stricter underwriting for investors.
- Few non-QM loans available
- Home equity loans and HELOCs on pause, have yet to resume origination.
Pennymac
A major direct mortgage lender, Pennymac offers various investment property loan options, but they specialize in VA home loans.
Loan types offered:
- Conventional investment property loans
- Jumbo loans
- Home equity loans
- DSCR
- Bank statement options.
Minimum down payment: ~15% for single-family investment; ~25% for 2–4 units
Credit score range: 620-700
Pros:
- Large servicing platform
- New flexible non-QM/DSCR options for investors
Cons:
- Some investor programs only available via correspondent/TPO channels
- Terms vary by product and rollout
New American Funding
New American Funding emphasizes tech-led mortgage service and inclusive initiatives. Their commitment to serving underserved communities earned them a spot on our list of the best bank statement mortgage lenders of 2025 as well as this one.
Loan types offered:
- Conventional investment property loans
- Jumbo loans
- Cash-out refinance
- Bank statement loans
- Home equity lines of credit (HELOCs)
- Interest-only options
- Construction loans
Minimum down payment: 15%
Credit score range: 580-660
Pros:
- One-time close construction loan; essentially a construction-to-permanent loan.
- Good digital tools
- Support for beginner investors
Cons:
- No info on lender fees
- The best fees require 40% down
Kiavi
Kiavi specializes in bridge loans, construction loans, and various types of rental property mortgages for investors, often with no appraisal required. They also offer refinance options such as seasoned and delayed purchase refinance.
Loan types offered:
- DSCR loans
- Rental portfolio loans (bundle 5+ properties)
- Fix-and-flip loans
- New construction
- Bridge loans
Minimum down payment: 20%
Credit score range: Not disclosed
Pros:
- Low documentation DSCR loans.
- Supports strategies like portfolio loans, BRRRR, etc.
Cons:
- Down payments/equity required may be high for non-ideal properties.
- Property types are restricted (some mixed-use or rural may not qualify).
United Wholesale Mortgage (UWM)
United Wholesale Mortgage offers a wide range of wholesale mortgage programs. Their investment property loans are available in four tiers with their own requirements. The lowest tier allows financing from as little as $50,000, with the highest going up to $2 million.
Loan types offered:
- DSCR purchase and refinance
- Bank-statement loan
Minimum down payment: 20%
Credit score range: 620
Pros:
- Allows financing up to 20 properties under Investor Flex DSCR, useful for scaling investors.
Cons:
- Requires in-depth documentation.
- Reserves are mandatory especially for higher-value loans (> ~$1.5M).
- Thresholds & terms can vary a lot depending on property type / count.
Fairway Independent Mortgage
Fairway Independent Mortgage is a full-service mortgage lender that emphasizes in-person service, with brick-and-mortar in most parts of the US.
Loan types offered:
- Conventional
- Jumbo loans
- DSCR loans
- Bank statement
- Interest-only features
Minimum down payment: 20%
Credit score range: 600-700
Pros:
- In-person service
- High approval rate
- Wide availability
Cons:
- Doesn’t offer certain non-QM options, such as HELOCs
- Higher fees than many other companies
- Not transparent with rates and fees on their website.
loanDepot
loanDepot is one of the largest retail non-bank lenders in the country, with a large selection of mortgage loan options.
Loan types offered:
- Jumbo
- Home equity loans
- Cash-out refinance
Minimum down payment: ~20%
Credit score range: 620+
Pros:
- Broad product mix
- Fast closing
Cons:
- Very limited transparency on fees, investor / non-QM eligibility, and rates until borrower starts application.
- Online reviews report poor communication.
Chase Bank
A major national bank, Chase Bank offers one of the highest jumbo loan maximums on the market at $9.5 million, with interest-only options as well.
Loan types offered:
- Jumbo mortgages
- HELOCs
- DSCR loans
- Cash-out refinance
- Interest-only options
Minimum down payment: 15%
Credit score range: 680+
Pros:
- Strong national presence and support.
- Very high jumbo loan maximums (up to $9.5 million).
- $5,000 closing guarantee for eligible borrowers.
- Higher down-to-value options in some markets.
Cons:
- Non-QM loan options like HELOCs only available in certain states.
- Not all requirements and other details disclosed publicly.
- In-person support and product availability can vary widely by state or branch.
How to Choose the Best Real Estate Investment Lenders
An experienced, flexible, and aligned investment property lender can be instrumental in the long-term success of your investment. The right lender can not only offer better rates and terms but also guide you through complex underwriting requirements and help you close faster in competitive markets. Here’s how you can sort through the myriad of lenders available in order to arrive at the right one:
Determine your needs
The first step to selecting the right lender among the dozens of investment mortgage lenders available is to determine what exactly your needs are. This lets you evaluate each lender based on how well they can serve this need. Consider your preferred investment strategy, your financial profile, and desired loan terms such as rate and down payment.
Fix-and-flip strategies, for instance, can only be facilitated by lenders who offer short-term financing such as hard money loans or specialized fix-and-flip loans. If you want to minimize your down payment and get potentially better rates, you may need to find a lender that offers FHA loans or VA loans.
Review lender qualification requirements
Once you have identified which lenders have the ability to cater to your needs, you should then review their qualification requirements to ensure a good match. A lender may expect a higher credit score for your desired loan type, for example, or have a lower LTV, which would require you to make a larger down payment. Each lender also has their own expectations regarding debt-to-income (DTI) ratio, cash reserves, and other financial qualifications.
Compare loan costs and terms
Narrow down your list of candidates further by ranking them in terms of feasibility, using their loan costs and terms as your basis. Look at interest rates, APRs, loan durations, and fees like origination and closing costs. Even small rate differences can add up over time, so weigh each offer’s total cost—not just the monthly payment.
Look into each lender’s strong suit
Some lenders are better at certain things than others. The best lender will be the one that fully understands your needs and how to craft the perfect solutions to fit your exact situation. Depending on the type of investment real estate loan you have your eye on, it can be worth going with a lender that is deeply familiar with your preferred loan option over a lender that offers marginally better rates and terms.
The more niche your chosen option, the more incentivized you are to seek out a lender that specializes in them. At Defy, we lean heavily towards DSCR loans and other non-QM loans, and have several years of experience in assisting investors in navigating complex borrowing situations, allowing us to give you the detailed support you need to get the most out of your mortgage.
Who is Rental Property Financing For?
Loans for investment property purchases are for anyone looking to purchase a real estate property and turn it into a profitable enterprise. This can involve generating income through rent, flipping, holding, or other strategies. Many of these loans are non-QM, making them well-suited as self-employed mortgages. Contrary to some myths, self-employed mortgages are not harder to get, they just require alternative documentation like bank statements, 1099s, or proof of cash flow instead of traditional W-2 income.
Types of Investment Property Loans
Several types of loans for investment properties exist, each with their own unique traits and target investments. Here’s a brief overview of the main ones on offer at Defy:
- DSCR loans: Allow borrowers to use a property’s cash flow potential to qualify for a mortgage, rather than their own financial credentials.
- Foreign national loans: Loan options for foreign nationals who do not have a US FICO score or Social Security number.
- Bank statement loans and P&L loans: Allow borrowers to prove their income through bank statements or profit-and-loss statements rather than traditional W-2 income or tax returns.
- Government-backed loans: FHA loans and VA loans can be used for investments with some restrictions.
- Conventional loans: Standard mortgages that are not backed by the government but are Qualified Mortgages (QM) subject to Fannie Mae and Freddie Mac guidelines, with stricter credit score and debt-to-income (DTI) requirements.
- Commercial property loans: Similar to conventional loans, but specifically designed for large-scale commercial properties like warehouses, hotels, office buildings, and shopping centers.
Key Takeaways
Make sure your lender’s expectations and long-term affordability align with your financial profile. Your chosen loan type, whether it’s DSCR, jumbo, bank statement, asset depletion, or fix-and-flip, should match your investment strategy. However, more importantly, your lender should also be experienced in the exact loan type you seek.
Each lender brings different strengths to the table. In Defy’s case, it’s easy qualification, personalized support, and highly customizable non-traditional loan options. If you’re ready to take the next step with us, you can schedule an appointment on our site, email us at team@defymortgage.com, or give us a call at (615) 622-1032.
If you’re a mortgage broker, those same advantages can be just what you need to target investors that other lenders often overlook, such as self-employed clients or investors with complex income streams. With Defy TPO in your corner, you can position yourself as the go-to resource for these underserved segments, boosting your market share and setting you up for long-term dominance. Got a pricing scenario? Send it to us for in-depth analysis. Alternatively, you can try our AI Pricer for a quick quote.
Best Investment Property Lenders FAQ
Which mortgage providers offer Non-QM loans for investment properties?
The mortgage providers who offer Non-QM loans for investment properties are lenders who specialize in alternative financing options for borrowers such as the following lenders:
- Defy Mortgage
- Rocket Mortgage
- Wells Fargo
- Pennymac
- New America Funding
Defy Mortgage, for example, helps investment property owners, short-term-rental investors, seasoned and novice real estate investors, entrepreneurs and more obtain a variety of Non-QM financing, such as DSCR loans, to purchase or refinance investment properties. As part of their product offerings, Defy Mortgage has DSCR loans catered to real estate investors with a minimum DSCR requirement of 0.75, up to 85% LTV (about 5% higher than the industry average), no tax returns needed, no maximum loan amount, and options for foreign nationals.
What is the average interest rate for an investment property?
Conventional investment property loan programs have rates competitive with conventional loans for a primary residence. However, non-QM loans like DSCR loans and jumbo loans can often have higher rates because of the added risk of a loan that isn’t backed by Fannie Mae or Freddie Mac.The best possible rate for such loans are often 1% higher than most conventional mortgages, but jumbo loans sometimes have rates that are even lower than conventional loans.
How to secure financing for investment properties?
You can secure financing for real estate investment using investment property loans. These are specialized financial instruments dedicated to the purchase of non-owner-occupied properties intended for generating passive income.
How do I qualify for a loan to buy an investment property?
To maximize your chances of getting approved for an investment property loan, you can strengthen your financial profile by checking your credit reports for discrepancies, improving your credit score and debt-to-income ratio, and increasing your cash reserves to raise lender confidence.
Maintaining organized documentation on your financials and the property you want to purchase also helps speed the underwriting process along. A larger down payment can also increase your chances and potentially lower your rates.
What is the minimum down payment required?
Like rates, the minimum down payment depends on the loan type and lender. However, most investment property loans have LTVs ranging from 70% to 80%, so expect a down payment of 20-30%, especially for riskier loans like jumbo loans. Some lenders, like Rocket Mortgage, are willing to offer as low as 15% down for borrowers with 720+ FICO score.
What should I consider when choosing an investment property lender?
You should first determine your investment needs, such as whether you need long-term financing, a fix-and-flip loan, or a program with a low down payment. Then, review each lender’s qualification requirements, including credit score, down payment, and debt-to-income ratio.
Finally, compare loan costs and terms like rates, fees, and duration, while also weighing the lender’s expertise in your preferred loan type to ensure they can guide you effectively through the process.
What are the best investment property lenders for 2025?
Between bank and non-bank lenders, you have a wealth of options. The choice should ultimately depend on your credit profile, your resources, the type of property, your timeline, and your investment strategy. Each of the best lenders for investment properties focuses on specific loan types and borrowers, so make sure the lenders you shortlist are compatible with your profile and goals.
With Defy, for example, you get access to flexible investment property financing specifically designed for investors, with interest-only periods of up to 10 years for loans up to $10 million, no W-2s or tax returns required, and options for foreign nationals who don’t have a US SSN or FICO score.
Can I use rental income to qualify for a loan?
Absolutely. DSCR loans are specifically designed to allow borrowers to use the income from a rental property to qualify for a loan. At Defy, you only need 0.75 DSCR to qualify, meaning your property only needs to make enough money to meet 75% of its mortgage payments.
Can I buy an investment property under an LLC?
Yes. In fact, it’s more advantageous to purchase an investment property under an LLC because it can help limit your personal liability and separate business debts and obligations from your personal finances.
What are the alternatives to investment property loans?
Besides specialized investment property loans, you can also make use of creative financing methods, such as taking out a VA or FHA loan for a multi-family home and living in one of the units while renting out the rest.
What is the average interest rate for an investment property?
Average interest rates for investment property loans tend to vary depending on the mortgage option you choose, but as a general rule, 30-year investment property loan rates can be 0.5% to 0.75% higher than 30-year primary residential mortgage rates.
FHA and VA loans tend to have better rates than conventional investment mortgages, but you will have to adjust your strategy around their restrictions. Non-QM loans, on the other hand, can have higher rates than conventional, but this can be mitigated by reporting a large average income with bank or P&L statements, or selecting a property with a high income potential in the case of DSCR loans.
Are investment property loans hard to get?
The difficulty of getting an investment property loan depends on what type of loan you are looking to apply for, as well as which lender you choose. Conventional investment property loans have stricter credit score and debt-to-income (DTI) standards.
If you have less-than-perfect credit, DSCR loans let you qualify with a FICO score of as low as 620 as long as your property makes 1.25 times as much as it has to pay in debt payments each year (At Defy, you can qualify with just 0.75 DSCR, with up to 85% LTV and no maximum loan amount, with options for foreign nationals as well).
How do I find a profitable investment property I can afford?
First, figure out how much you can afford by evaluating your finances–double-check and consider improving your credit score and utilization, as well as your available capital. Keeping abreast of interest rates, housing policies, the property’s condition, and economic indicators will inform you about the likely cost of purchasing the property.
Next, research your target markets to find areas that have the strongest rental demand and appreciation to maximize profitability, with particular emphasis on up-and-coming neighborhoods to maximize affordability.
How to get approved for a loan to buy an investment property?
You’ll typically need to meet lender requirements for credit score, down payment, and debt-to-income ratio, and provide documentation of your income and assets. A proven track record of property management can also be a big help to boost lender confidence. If you’re self-employed, you’ll need to provide 1099 statements and other proof of self-employed income.
How to choose the best investment property loans?
The best investment property loan choice will depend on your investment goals and resources. House flipping strategies can be facilitated by dedicated fix-and-flip loans or even by withdrawing home equity using a home equity loan or HELOC to fund renovations.
If your focus is long-term rentals, however, a DSCR loan can help you take full advantage of your property’s cash flow by using it to secure financing and better loan terms.
