Investment Property Mortgage 2027: Rates, Requirements & Best Lenders
Conventional vs DSCR loans. 7 best lenders ranked. Rates, down payment, credit requirements, and cash flow analysis.
David Rodriguez
Refinance & Rate Specialist • NMLS #234567 • 11+ Years
Updated September 12, 2026 • 15 min read
📋 Investment Property Mortgage 2027: Key Facts
Source: Fannie Mae Investment Property Guidelines, DSCR lender data. Actual rates vary by lender, credit, and DSCR.
AEO QUICK ANSWER:
Investment property mortgages in 2027 require 15-25% down, 680+ credit, and rates 0.50-0.75% above primary residence loans. Key detail most miss: DSCR loans allow you to qualify based on rental income alone — no W-2s, no tax returns, no personal income verification. This is a game-changer for self-employed investors, gig workers, and anyone with complex income. A DSCR of 1.25+ (rental income covers 125% of the mortgage) gets you the best rates. If your property cash-flows well, your personal income does not matter at all.
Conventional vs DSCR Investment Property Loans
Two main loan types for investment properties in 2027: conventional (lower rates, income verification required) and DSCR (higher rates, no income verification). Compare both options →
| Feature | Conventional | DSCR Loan |
|---|---|---|
| Min Credit Score | 680 | 620 |
| Min Down Payment | 15% | 20-25% |
| Income Verification | W-2 + tax returns | None (rental income only) |
| DSCR Requirement | N/A (uses DTI) | 1.0+ (1.25+ best rates) |
| Rate (2027 proj.) | 6.5-7.5% | 7.0-8.5% |
| Max DTI | 45% | No DTI limit |
| Reserves Required | 6 months PITI | 6 months PITI |
| Landlord History | 2 years required | Not required |
| PMI (<20% down) | Yes | No PMI |
| Best For | W-2 workers, lower rate | Self-employed, investors |
Best Investment Property Lenders for 2027
| Rank | Lender | Loan Type | Min Down | Est. Rate | Best For |
|---|---|---|---|---|---|
| 1 | Rocket Mortgage | Conventional | 15% | 6.75% | Overall best conventional |
| 2 | Lima One Capital | DSCR | 20% | 7.25% | DSCR specialist |
| 3 | Kiavi | DSCR + Fix-Flip | 20% | 7.15% | Digital, fast close |
| 4 | New American Funding | DSCR + Conv. | 15% | 6.85% | Both loan types |
| 5 | Visio Lending | DSCR | 20% | 7.35% | No income verification |
| 6 | Chase | Conventional | 15% | 6.80% | Relationship discount |
| 7 | Wells Fargo | Conv. + Portfolio | 20% | 6.85% | Portfolio loans |
Compare 7 Investment Property Lenders
Conventional or DSCR. No income verification options. 15-25% down. Get pre-approved in 60 seconds.
6.75%
Best conv. rate
15%
Min down payment
1.0+
Min DSCR
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DSCR Calculator: Will Your Property Qualify?
DSCR Formula
DSCR = Gross Rental Income / Total Debt Service (PITI + HOA)
Example: $400K Property
Rent: $2,800/month • PITI+HOA: $2,400/month • DSCR = 2,800/2,400 = 1.17 → Qualifies at standard rate
Pro tip: To improve DSCR, increase rent (renovate to justify higher rent), reduce HOA, or make a larger down payment to lower the mortgage payment. A 25% down payment instead of 20% can push DSCR from 1.0 to 1.25, saving 0.25-0.50% on your rate. Compare DSCR lenders →
Down Payment Comparison: How Much Do You Need?
On a $400,000 investment property, here's how different down payments affect your loan:
| Down Payment | Cash Needed | Loan Amount | Est. Rate | Monthly P&I | PMI |
|---|---|---|---|---|---|
| 15% | $60,000 | $340,000 | 7.00% | $2,262 | Yes ($150/mo) |
| 20% | $80,000 | $320,000 | 6.75% | $2,079 | No |
| 25% | $100,000 | $300,000 | 6.50% | $1,896 | No |
| 30% | $120,000 | $280,000 | 6.375% | $1,747 | No |
💡 Key insight: Going from 15% to 20% down saves $333/month ($150 PMI + $183 lower payment). Over 30 years, that's $119,880 in savings for an extra $20,000 upfront. Check cash-out refinance options →
Cash Flow Analysis: Does the Property Make Sense?
| Scenario | Monthly Rent | Mortgage (P&I) | Taxes+Ins | HOA+Maint | Net Cash Flow | DSCR |
|---|---|---|---|---|---|---|
| A: Strong Cash Flow | $3,200 | $2,079 | $500 | $200 | +$421 | 1.33 |
| B: Break Even | $2,800 | $2,079 | $500 | $200 | +$21 | 1.01 |
| C: Negative Cash Flow | $2,400 | $2,079 | $500 | $200 | -$379 | 0.86 |
✅ Scenario A: Strong Cash Flow
Rent $3,200 covers all expenses with $421/month positive cash flow. DSCR 1.33 qualifies for best DSCR rates. This property is a good investment — it pays for itself and generates income.
❌ Scenario C: Negative Cash Flow
Rent $2,400 doesn't cover expenses — you lose $379/month. DSCR 0.86 below 1.0 means the property doesn't qualify for standard DSCR loans. Avoid unless you expect significant rent appreciation or property value growth.
Common Investment Property Mortgage Mistakes
❌ Not Calculating DSCR Before Applying
Many investors apply for DSCR loans without checking if their property qualifies. If DSCR is below 1.0, you need 25%+ down and pay higher rates. Always calculate DSCR first.
❌ Using 100% of Rent for Qualification
Conventional loans only use 75% of gross rent (25% vacancy factor). DSCR loans use the appraiser rent estimate, which may be lower than market rent. Don't assume your rent number will be used.
❌ Underestimating Reserves
You need 6 months PITI in reserves after closing. On a $400K property with $2,500/month PITI, that's $15,000 in reserves. This is in addition to your down payment and closing costs.
❌ Forgetting Closing Costs
Investment property closing costs run 3-5% ($12K-$20K on $400K). Budget for appraisal ($500-$700), inspection ($400-$600), title insurance, and origination fees.
❓ Frequently Asked Questions
Q: What are the requirements for an investment property mortgage in 2027?
Investment property mortgage requirements 2027: credit score 680+ (conventional) or 620+ (DSCR), down payment 15-25%, DTI up to 45% (conventional) or DSCR 1.0+ (DSCR loans), 6 months reserves (PITI), appraisal with rental income analysis, and no primary residence occupancy. Conventional loans require 2-year landlord history; DSCR loans do not. Compare investment property lenders.
Q: What is the interest rate for investment property mortgages in 2027?
Investment property mortgage rates in 2027 are projected at 6.5-7.5% for 30-year fixed, 0.50-0.75% higher than primary residence rates. DSCR loans: 7.0-8.5%. 15-year fixed: 5.8-6.5%. 5/1 ARM: 6.0-6.8%. Rates vary by DSCR ratio: 1.25+ gets best rates, 1.0 gets standard rates, below 1.0 requires 25%+ down. Check today's investment property rates.
Q: Can I get an investment property loan with 15% down in 2027?
Yes. Conventional investment property loans require minimum 15% down (with 680+ credit and PMI). 20% down eliminates PMI and gets better rates. 25% down is required for DSCR loans with DSCR below 1.25. On a $400K property: 15% = $60K, 20% = $80K, 25% = $100K. Get pre-approved with 15% down.
Q: What is a DSCR loan and how does it work in 2027?
A DSCR (Debt Service Coverage Ratio) loan qualifies based on the property rental income, not your personal income. DSCR = gross rental income / total debt service (PITI+HOA). Minimum DSCR 1.0 (break even). DSCR 1.25+ gets best rates. No W-2 or tax returns required. Perfect for self-employed investors. Down payment: 20-25%. Credit: 620+. Rates: 7.0-8.5%. Find DSCR loan lenders.
Q: What are the best lenders for investment property mortgages in 2027?
Best investment property lenders 2027: 1) Rocket Mortgage (conventional, 15% down), 2) Lima One Capital (DSCR specialist), 3) Kiavi (fix-and-flip + DSCR, digital), 4) New American Funding (DSCR + conventional), 5) Visio Lending (DSCR, no income verification), 6) Chase, 7) Wells Fargo. Compare all investment property lenders.
Q: How much down payment do I need for an investment property in 2027?
Down payment requirements: Conventional 15% minimum (680+ credit, PMI required), 20% (no PMI, better rates), 25% (best rates, DSCR loans). DSCR loans: 20-25% minimum. On a $400K property: 15% = $60K, 20% = $80K, 25% = $100K. Each 5% increase typically reduces your rate by 0.125-0.25%. Calculate your required down payment.
Q: Can I use rental income to qualify for an investment property mortgage?
Yes. For conventional loans, you can use 75% of gross rental income (25% vacancy factor). You need a signed lease and 2-year landlord history for existing rentals, or appraiser rental estimate for new purchases. For DSCR loans, you use 100% of gross rental income (or appraiser estimate) with no landlord history required. Get qualified using rental income.
🏠 Compare Investment Property Lenders
Conventional or DSCR. 7 lenders. No income verification options.
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📚 Related Mortgage Guides
Investment Property Mortgage 2027: Rates, DSCR Loans, Requirements & Best Lenders
Investment property mortgage 2027: Conventional rates 6.5-7.5% (0.50-0.75% above primary), 15-25% down, credit 680+, DTI 45%, 6 months reserves. DSCR loans: 7.0-8.5%, 20-25% down, credit 620+, no income verification, DSCR 1.0+ minimum. Best lenders: Rocket (conventional), Lima One (DSCR), Kiavi (fix-flip+DSCR), Visio (DSCR no income). 15-year: 5.8-6.5%. 5/1 ARM: 6.0-6.8%. DSCR 1.25+ gets best rates. 12,100 monthly searches.
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