Investment Property Loan Rates 2026: DSCR, Conventional & Portfolio Lender Comparison
Complete guide to investment property loan rates in 2026. DSCR loans (6.5%-8.5%), conventional (6.75%-7.5%), portfolio lenders (7.0%-9.0%). Compare rates, requirements, and get the best deal.
⚡ Quick Answer: Investment Property Loan Rates 2026
Investment property loan rates in March 2026 range from 6.5%-9.0% depending on loan type and qualifications. Best rates: DSCR loans 6.5%-8.5% (no tax returns), conventional 6.75%-7.5% (requires income docs), portfolio lenders 7.0%-9.0% (flexible terms). Rates are 0.5-1.5% higher than owner-occupied mortgages.
📊 Investment Property Loan Rates (March 2026):
- • DSCR Loans: 6.5%-8.5% (no tax returns, DSCR-based)
- • Conventional: 6.75%-7.5% (requires income verification)
- • Portfolio Lenders: 7.0%-9.0% (flexible, 10+ properties)
- • Hard Money: 8.0%-12.0% (short-term, fix & flip)
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Investment Property Loan Rates March 2026
Here are current investment property loan rates as of March 19, 2026, updated daily from top lenders:
| Loan Type | 30-Year Fixed | 15-Year Fixed | Min Down | Min Credit |
|---|---|---|---|---|
| DSCR Loan (DSCR 1.25+) | 6.5%-7.0% | 5.95%-6.45% | 20% | 680 |
| DSCR Loan (DSCR 1.0-1.24) | 7.0%-7.5% | 6.45%-6.95% | 20-25% | 680 |
| DSCR Loan (DSCR 0.75-0.99) | 8.0%-8.5% | 7.45%-7.95% | 30% | 700 |
| Conventional Investment | 6.75%-7.5% | 6.25%-6.95% | 15-25% | 680 |
| Portfolio Lender | 7.0%-9.0% | 6.5%-8.5% | 20-30% | 660 |
| Hard Money (Fix & Flip) | 8.0%-12.0% | N/A (6-24 mo term) | 25-35% | 600 |
💡 Rate Factors: Your actual rate depends on credit score, down payment, DSCR ratio (rental income), property type, and number of properties owned. Best rates require 740+ credit and 25%+ down.
1. DSCR Loan Rates: 6.5%-8.5% (No Tax Returns)
DSCR loans are the #1 choice for investors in 2026 because they don't require tax returns or income verification. Rates are based on your property's DSCR (rental income ÷ PITIA payment).
✅ DSCR Loan Rate Breakdown:
| DSCR | Credit 740+ | Credit 700-739 | Credit 680-699 | Credit 660-679 |
|---|---|---|---|---|
| 1.25+ | 6.5% | 6.75% | 7.0% | 7.25% |
| 1.10-1.24 | 7.0% | 7.25% | 7.5% | 7.75% |
| 1.00-1.09 | 7.5% | 7.75% | 8.0% | 8.25% |
| 0.75-0.99 | 8.0% | 8.25% | 8.5% | 8.75% |
💰 DSCR Loan Payment Example:
Property: $400K rental (DSCR 1.25)
Down Payment: $80K (20%)
Loan Amount: $320K
Rate: 6.5% (30-year fixed)
Monthly Payment (PI): $2,023
Monthly Rent: $3,200
Cash Flow: +$577/month (after PITIA)
🏆 Best DSCR Lenders 2026: Truss Financial (6.5% starting, 0.75 DSCR, 21-day closing), Visio Lending (portfolio lenders), LendingOne (experienced investors).
2. Conventional Investment Property Rates: 6.75%-7.5%
Conventional investment property loans offer the lowest rates (6.75%-7.5%) but require tax returns, W-2s, and strict income verification. Best for W-2 employees with clean income docs.
✅ Conventional Investment Loan Requirements:
- • Credit Score: 680+ (best rates 740+)
- • Down Payment: 15-25% (1st property 15%, 2nd+ 20-25%)
- • DTI Ratio: Max 45% (includes all properties)
- • Tax Returns: 2 years required
- • Income Verification: W-2s, pay stubs, employment verification
- • Reserves: 6-12 months PITIA per property
- • Max Properties: 10 financed properties (Fannie/Freddie)
💡 When to Choose Conventional: If you're a W-2 employee with clean tax returns and want the lowest rate (0.25-0.75% lower than DSCR). Not ideal for self-employed or investors with 10+ properties.
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Get My Investment Rate →What Affects Investment Property Loan Rates?
Your investment property loan rate depends on 7 key factors:
1. Credit Score (0.5-1.5% rate impact)
- • 740+: Best rates (6.5%-7.0%)
- • 700-739: Good rates (6.75%-7.5%)
- • 680-699: Average rates (7.0%-8.0%)
- • 660-679: Higher rates (7.5%-8.5%)
- • 640-659: Premium rates (8.0%-9.0%)
2. Down Payment (0.25-0.5% per 5% down)
- • 15% down: Highest rates (conventional only)
- • 20% down: Standard rates
- • 25% down: -0.25% rate reduction
- • 30% down: -0.5% rate reduction
- • 35%+ down: Best rates (negotiable)
3. DSCR Ratio (0.5-1.0% rate impact for DSCR loans)
- • DSCR 1.25+: Best rates (6.5%-7.0%)
- • DSCR 1.10-1.24: Good rates (7.0%-7.5%)
- • DSCR 1.00-1.09: Average rates (7.5%-8.0%)
- • DSCR 0.75-0.99: Higher rates (8.0%-8.5%)
4. Number of Properties (0.25-0.5% per property after 4th)
- • 1-4 properties: Standard rates
- • 5-6 properties: +0.25% rate increase
- • 7-10 properties: +0.5% rate increase (conventional max)
- • 10+ properties: Portfolio lenders only (7.0%-9.0%)
5. Property Type (0.25-0.75% rate impact)
- • Single-family rental: Best rates
- • 2-4 unit multifamily: +0.25% rate increase
- • Condo (warrantable): +0.25% rate increase
- • Condo (non-warrantable): +0.5-0.75% rate increase
- • Short-term rental (Airbnb): +0.5% rate increase
6. Loan Amount (0.25-0.5% for jumbo)
- • $75K-$766K: Conforming rates (best)
- • $766K-$2M: Jumbo rates (+0.25-0.5%)
- • $2M-$5M: Super jumbo rates (+0.5-1.0%)
7. Loan Term (15-year vs 30-year)
- • 30-year fixed: 6.5%-8.5% (lower payment, higher rate)
- • 15-year fixed: 5.95%-7.95% (0.5-0.55% lower rate)
- • 5/1 ARM: 6.0%-7.5% (0.5% lower than 30-year fixed)
Frequently Asked Questions
What are current investment property loan rates?
As of March 2026, investment property loan rates range from 6.5%-9.0%: DSCR loans (6.5%-8.5%), conventional (6.75%-7.5%), portfolio lenders (7.0%-9.0%), hard money (8.0%-12.0%).
Are investment property rates higher than primary residence?
Yes, investment property rates are 0.5-1.5% higher than primary residence rates. Example: Primary residence 6.0% vs investment property 6.75%-7.5%. This is due to higher default risk.
What is the best investment property loan?
DSCR loans are best for most investors (no tax returns, 6.5%-8.5% rates, 20% down). Conventional is best for W-2 employees (lowest rates 6.75%-7.5%). Portfolio lenders are best for 10+ properties.
How much down payment for investment property?
Investment properties require 15-30% down payment: Conventional (15-25%), DSCR loans (20-30%), portfolio lenders (20-30%), hard money (25-35%). First investment property may qualify for 15% down.
Can I get an investment property loan without tax returns?
Yes, DSCR loans approve without tax returns or income verification. Rates are 6.5%-8.5%, require 20-30% down, and approve based on rental income (DSCR ratio) only.
What credit score do I need for investment property loan?
Most investment property loans require 660-680+ credit score. Best rates (6.5%-7.0%) require 740+ credit. DSCR loans: 660+. Conventional: 680+. Portfolio lenders: 660+. Hard money: 600+.
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