⚡ JUNE 2026 — INVESTMENT PROPERTY RATES vs PRIMARY HOME
| Loan Type | Rate (June 2026) | Min Down | Qualifies On |
|---|---|---|---|
| Primary Home (30-yr fixed) | 6.89% | 3–5% | Personal income (W-2/1099) |
| Investment — Conventional | 7.64–7.89% | 15–20% | Personal income + rental history |
| Investment — DSCR Loan | 7.5–9.5% | 20–25% | Property rent ÷ payment ≥ 1.0 |
| Investment — Portfolio/Bank | 7.75–9.0% | 20–30% | Bank relationship + assets |
| Multi-Unit Investment (5+) | 7.5–8.5% | 25–30% | Commercial underwriting |
Investment Property Mortgage Rates 2026: Rental Property Loans, DSCR & Best Lenders
Investment property rates run 0.75–1.5% above primary home rates in 2026 — meaning ~7.64–8.25% for a conventional rental vs 6.89% for your primary home. DSCR loans skip personal income entirely. Here's how to finance your rental property at the best possible rate. Compare investment property lenders now.
Conventional vs DSCR: Which Investment Loan Is Right for You?
🏦 Conventional Investment Loan
- ✅ Lower rate (7.64–7.89%)
- ✅ Best for W-2 employees with good DTI
- ✅ 15–20% down (single-family)
- ⚠️ Personal income + DTI required
- ⚠️ Max 10 financed properties (Fannie Mae)
- ⚠️ Rental history required for income offset
📊 DSCR Loan (No Personal Income)
- ✅ No personal income or DTI check
- ✅ Unlimited properties (no cap)
- ✅ Self-employed, investors, LLC ownership
- ✅ Short-term rental (Airbnb) income accepted
- ⚠️ Higher rate (7.5–9.5%)
- ⚠️ Property must cash flow (DSCR ≥ 1.0)
Investment Property Cash Flow Calculator
📐 Example: $400K Single-Family Rental @ 7.75% (20% Down)
| Purchase Price | $400,000 |
| Down Payment (20%) | $80,000 |
| Loan Amount | $320,000 |
| Monthly P&I (7.75%) | $2,290 |
| Property Tax (~1.2%/yr) | $400/mo |
| Homeowner's Insurance | $120/mo |
| Total PITIA | $2,810/mo |
| Market Rent | $2,800/mo |
| DSCR Ratio | 0.99 (borderline) |
| Vacancy (8%) | −$224/mo |
| Maintenance (10%) | −$280/mo |
| Net Monthly Cash Flow | −$514/mo ⚠️ |
⚠️ At 7.75%, this deal barely cash flows. At 6.89% (primary home), same property = +$250/mo positive cash flow. The rate premium matters enormously for investment analysis.
Best Investment Property Lenders 2026
Kiavi (formerly LendingHome)
From 7.5% (DSCR)
Largest DSCR lender by volume. Fast close (3 weeks). No personal income check. Up to 80% LTV. 600+ credit score.
Get Kiavi (formerly LendingHome) Rate →New Silver
From 7.75% (DSCR)
Instant pre-approval online. No appraisal for some deals. Fast 7-day close available. Ideal for Airbnb / short-term rental DSCR.
Get New Silver Rate →Chase Bank
From 7.625%
Best conventional investment rates for Chase customers. Solid for straightforward 1–4 unit rental. Relationship discounts for Private Client.
Get Chase Bank Rate →Visio Lending
From 7.875%
No limit on number of properties. STR (Airbnb) income accepted at 1x multiplier. Up to $2M per property. Blanket loan options.
Get Visio Lending Rate →Find the Lowest Rate for Your Rental Property
Every 0.25% difference on a $300K investment loan = $44/month = $15,840 over 30 years. Compare investment property lenders — it's the highest-ROI thing you can do before buying.
Investment Property Mortgage FAQ
What are investment property mortgage rates in 2026?
Investment property mortgage rates in June 2026 are approximately 7.5–8.25% for conventional loans (compared to 6.89% for primary homes). The rate premium above primary home rates: Single-family rental: +0.75–1.0%. 2–4 unit investment: +0.75–1.25%. 5+ unit commercial: +1.0–1.5%. Why the premium: Investment properties have higher default risk — owners default on rentals before primary homes when finances get tight. DSCR loans (no personal income verification) run 7.5–9.5% depending on DSCR ratio, credit score, and property type. The investment property rate premium makes cash flow analysis critical before buying.
How much down payment is required for an investment property mortgage?
Investment property down payment requirements in 2026: Conventional single-family rental: 15% minimum (but 20%+ to avoid higher pricing adjustments). Conventional 2–4 unit rental: 20–25% minimum. DSCR loan (no-doc): 20–25% minimum. Portfolio/bank loan: 20–30% depending on lender. No 3.5% FHA or 0% VA options for pure investment properties — those programs require owner-occupancy. Exception: FHA for house hacking (owner-occupied with rental units). If you put less than 20% on a conventional investment property, Fannie Mae pricing adjustments (LLPAs) significantly raise your rate. Most investors put 20–25% down to minimize pricing hits and maximize cash flow.
What is a DSCR loan and how does it work for rental property?
A DSCR (Debt-Service Coverage Ratio) loan qualifies based on the property's rental income rather than the borrower's personal income. DSCR formula: Monthly rent ÷ monthly mortgage payment (PITIA). DSCR of 1.0 = rent exactly covers mortgage. DSCR of 1.25 = rent is 125% of mortgage payment. Most DSCR lenders require: DSCR of 1.0–1.25 minimum. 720+ credit score. 20–25% down payment. 6–12 months reserves. DSCR loans are Non-QM — they don't follow Fannie/Freddie guidelines. Advantages: No personal income verification. No DTI limit. Self-employed and investors with complex tax returns love DSCR. You can have 10, 20, or 50 investment properties and still qualify. Disadvantages: Higher rate (+1–2% above conventional). Higher closing costs.
Can I use rental income from the new property to qualify for the mortgage?
For conventional investment property loans: You generally cannot use projected rental income from a property you haven't owned yet. Exception: If you have a signed lease agreement before closing, Fannie Mae allows 75% of that rental income. For refinances of existing rentals: Up to 75% of current rent is added to your income (minus vacancy/expenses). For DSCR loans: The entire qualification is based on property income — no personal income needed at all. For house hacking (owner-occupied multi-unit): FHA and conventional allow 75% of market rent from non-owner units. Best strategy if you need rental income to qualify: Use a DSCR loan (property must cash flow), or buy owner-occupied first, then rent out after 12 months.
Related Investment & Rental Property Guides
Meet Emily
Construction & Commercial Loans Expert
Emily Chen specializes in complex financing solutions for construction projects and commercial real estate investments. With 8 years of experience in construction-to-permanent loans and DSCR financing, she has funded over $200 million in construction and investment property projects. Her expertise in navigating construction loan complexities and commercial underwriting makes her invaluable for real estate investors and builders.
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Funded $200M+ in construction projects