Investment Property Mortgage Rates August 2026: Current Rates + Best Lenders
Investment property rates are 0.50-1.00% higher than primary residence rates. In August 2026, that means 7.50-8.50% for conventional and 7.50-9.00% for DSCR loans. We compared 10 investment property lenders on rate, down payment, DSCR requirements, and speed.
Emily Chen
Investment Property & DSCR Specialist • 12+ Years
Updated August 3, 2026 • 13 min read
7.50%
Best conv. rate
720+ credit
20%
Min down payment
Conventional
1.25
Min DSCR ratio
Most lenders
7.50%
DSCR starting rate
Self-employed
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Whether you\'re buying your first rental or your tenth, compare conventional and DSCR lenders in one place. See your actual rate — not just averages. 60 seconds, no credit impact.
📊 Current Investment Property Rates — August 2026
| Loan Type | Starting Rate | Avg Rate | Down Payment | Min Credit | Best For |
|---|---|---|---|---|---|
| 30-Year Fixed Conventional | 7.50% | 7.875% | 20-25% | 620 (720+ best) | Long-term hold |
| 15-Year Fixed Conventional | 6.75% | 7.25% | 20-25% | 620 (720+ best) | Faster payoff |
| 5/1 ARM Investment | 6.50% | 7.00% | 20-25% | 680+ | Short-term hold |
| DSCR Loan | 7.50% | 8.25% | 20-25% | 620+ | Self-employed investors |
| Bank Statement Loan | 7.75% | 8.50% | 20-25% | 620+ | No tax returns needed |
| Hard Money Loan | 10.00% | 11.50% | 25-30% | 500+ | Fix & flip (short-term) |
Rates as of August 3, 2026. Primary residence 30-year fixed: 6.77% for comparison. Investment rates are 0.50-1.00% higher.
🏆 Top 10 Investment Property Lenders — August 2026
| Rank | Lender | Starting Rate | Min Down | Min DSCR | Specialty |
|---|---|---|---|---|---|
| #1 | Kiavi | 7.50% | 20% | 1.20 | DSCR + fix & flip |
| #2 | Lima One Capital | 7.75% | 20% | 1.25 | Rental + renovation |
| #3 | Visio Lending | 7.75% | 20% | 1.25 | DSCR specialist |
| #4 | Finance of America | 7.875% | 25% | N/A | Conventional investment |
| #5 | Rocket Mortgage | 7.875% | 20% | N/A | Online conventional |
| #6 | Better.com | 8.00% | 20% | N/A | Fast online approval |
| #7 | New American Funding | 8.00% | 20% | 1.30 | DSCR + conventional |
| #8 | Park West Capital | 8.25% | 20% | 1.20 | Non-QM specialist |
| #9 | Griffin Funding | 8.25% | 20% | 1.20 | Bank statement + DSCR |
| #10 | Truss Financial | 8.50% | 25% | 1.25 | Portfolio loans |
🤔 Conventional vs DSCR: Which Loan Is Right for You?
🏦 Conventional Investment Loan
- • Rate: 7.50-8.50% (lowest available)
- • Down: 20-25%
- • Qualification: W-2 income, tax returns, DTI under 45%
- • Credit: 620+ (720+ for best rates)
- • Max loans: 10 financed properties
- • Best for: W-2 investors with simple finances
🏠 DSCR Loan (Non-QM)
- • Rate: 7.50-9.00% (0.50-1.00% higher)
- • Down: 20-25%
- • Qualification: Property cash flow (DSCR 1.20+), no personal income needed
- • Credit: 620+ (some 600+)
- • Max loans: Unlimited (no Fannie/Freddie limit)
- • Best for: Self-employed, investors scaling portfolio
📈 SCALE YOUR RENTAL PORTFOLIO
Compare 10+ Investment Property Lenders in 60 Seconds
Whether you need a conventional loan or a DSCR loan, compare rates from 10+ investment property lenders. See your actual rate — not just averages. No credit impact.
🏠 House Hacking: Buy with 3.5% Down (FHA) or 0% Down (VA)
If you\'re willing to live in one unit of a 2-4 unit property, you can use owner-occupied financing — much lower rates and down payments:
FHA Multi-Unit (Live in 1 Unit):
- • 3.5% down payment
- • 580+ credit score
- • Rate: ~6.14% (August 2026)
- • 2-4 unit properties
- • Rental income from other units counts
- • Must live in one unit for 12 months
VA Multi-Unit (Live in 1 Unit):
- • 0% down payment
- • 580+ credit score
- • Rate: ~6.22% (August 2026)
- • 2-4 unit properties
- • No PMI
- • Must live in one unit for 12 months
❓ Investment Property Mortgage FAQ
What are current investment property mortgage rates?
August 2026: Conventional 7.50-8.50%, DSCR 7.50-9.00%, hard money 10-13%. Rates are 0.50-1.00% higher than primary residence (6.77%).
→ Compare investment property lenders — 60 secondsHow much down payment for an investment property?
Conventional: 20-25%. DSCR: 20-25%. FHA multi-unit (house hack): 3.5%. VA multi-unit: 0%. Hard money: 25-30%.
→ Compare investment property lenders — 60 secondsWhat is a DSCR loan?
DSCR (Debt Service Coverage Ratio) loan qualifies on rental income, not personal income. DSCR = Rent / PITIA. Need 1.20+. No W-2s, no tax returns. Perfect for self-employed investors. Rates 7.50-9.00%.
→ Compare investment property lenders — 60 secondsCan I get an investment loan with bad credit?
Conventional: 620+. DSCR: 620+ (some 600). FHA: 580+. Hard money: 500+. Lower credit = higher rates and larger down payment.
→ Compare investment property lenders — 60 secondsConventional vs DSCR: which is better?
Conventional = lower rate (7.50%) but needs W-2 income. DSCR = higher rate (8.25%) but no income docs. Use conventional for first property, DSCR for scaling.
→ Compare investment property lenders — 60 seconds📚 Related Articles
Find the Best Loan for Your Next Investment Property
Compare conventional and DSCR lenders in 60 seconds. See your actual rate from 10+ investment property lenders. No credit impact. Start scaling your portfolio today.
Updated August 3, 2026. Investment property rates are higher than primary residence rates. DSCR loans are non-QM and may have higher fees.