When you’re ready to expand your real estate portfolio, securing the right mortgage is one of the most important steps. Mortgages for new investment properties come with distinct rules, higher risks, and specialized loan types. Yet with the right guidance, you can find financing that supports your goals rather than holding them back. At Bankpricer, we help real estate investors compare options, understand trade-offs, and lock in competitive terms—all without the confusion.
Let’s walk through what makes investment property mortgages different, what financing options are available, and how Bankpricer can help you get the best deal for your next acquisition.
How Investment Property Mortgages Differ from Primary Residences
When you finance a property you don’t plan to live in, lenders tend to view the deal as riskier. That’s because if financial stress arises, borrowers are more likely to prioritize paying the mortgage on their primary home first. As a result, lenders typically impose stricter criteria, such as:
Higher interest rates or risk-based pricing: Lenders often add a premium (sometimes 0.5% to 2.5%) to the interest rate on non-owner-occupied properties to mitigate risk.
- Larger down payment requirements: While owner-occupied loans might allow 3%–5% down, investment property loans often require 15% to 25% (or more) down.
- Stricter credit and debt ratios: You may need stronger credit (e.g. 700+), lower debt-to-income ratios, and solid reserves.
- Rental income underwriting or DSCR loans: Some lenders will consider projected rental income or a Debt Service Coverage Ratio (DSCR) measure to qualify the property.
- Shorter terms or interest-only periods: Lenders may prefer 15- or 20-year terms or offer interest-only loans for a period, rather than a full 30-year amortizing schedule.
Because of these added challenges, it’s more important than ever to shop and compare lending options. That’s where Bankpricer’s tools and team bring real value.
Common Mortgage Options for Investment Properties
Here’s a rundown of the most common loan types you’ll see when financing an investment property:
Conventional Investment Loans
These are similar to conventional mortgages for homeowners, but with investment-property pricing and stricter qualification standards.
DSCR (Debt Service Coverage Ratio) Loans
These loans underwrite based on the property’s projected cash flow rather than your personal income. They’re ideal when your personal income is irregular or when the property’s rent can sustain the debt.
Bank Statement / Non-QM Loans
For investors with complex tax returns or heavy write-offs, lenders may accept 12–24 months of bank statements as proof of income. This flexibility can make it easier to qualify when traditional underwriting fails.
Fix-and-Flip / Short-Term Rehab Loans
Designed for investors who plan to renovate and resell or refinance quickly, these are short-term, often interest-only loans with higher costs but high flexibility.
Jumbo and Portfolio Loans
If the property’s value exceeds conforming loan limits, you’ll look at jumbo or portfolio loans, which are often held on a lender’s books and not sold to secondary markets. These loans often offer more flexibility, especially for unique investment properties.
Strategies to Strengthen Your Investment Mortgage Application
While investment mortgages are tougher, you can take concrete steps to improve your odds:
- Build and maintain excellent credit (750+ if possible).
- Accumulate cash reserves — many lenders like to see 6–12 months of mortgage payments in reserve.
- Use a lower loan-to-value (LTV) ratio by putting down 20%–25%.
- Show a track record of real estate investing, including rental history or appraisals.
- Structure deals conservatively (i.e., realistic rents, stable expenses, no overleveraging).
- Work with a broker or service that lets you compare many lenders at once — so you can get the best rate possible.
Bankpricer’s platform connects you with over 100 trusted lending partners, giving you access to more options and more competitive rates.
How Bankpricer Can Help You Secure a Strong Investment Mortgage
Navigating investment property mortgages is not a one-size-fits-all process. At Bankpricer, we make it easier, clearer, and faster.
Tailored Mortgage Comparison
You tell us your goals, property type, down payment, and other preferences. We compare across conventional, DSCR, bank statement, fix-and-flip, and non-QM programs so you see side-by-side options.
Transparency and Expert Guidance
We believe in no surprises. We show fees, rate adjustments, and eligibility criteria. Our team is available to answer questions on DSCR loans, underwriting, or property-specific hurdles.
Speed and Efficiency
Mortgage rates shift daily. Our platform helps you lock in your rate quickly. Plus, our streamlined process helps shrink the time you spend chasing lenders.
Personalized Rate Quotes
Rather than generic “advertised rates,” Bankpricer delivers personalized rate quotes based on your credit, down payment, property type, and loan program.
What to Watch Out For in Investment Mortgages
Even with solid support, investors must watch these common pitfalls:
- Hidden costs: Higher origination fees, inspection costs, or wraparound charges can erode returns.
- Vacancy and operating expenses: A property with zero rent still has taxes, insurance, utilities, and maintenance.
- Rate resets or adjustable terms: Make sure you understand how ARMs or interest-only loans will reset and impact payments.
- Underwriting surprises: Lenders may adjust qualifying rental income, reserves, or vacancy assumptions.
- Break-even timelines: Always calculate how long it takes for rental revenue (less expenses) to cover mortgage payments.
Keeping these risks in mind ensures you choose a mortgage that strengthens, rather than weakens, your investment.
Making Your Investment Mortgage Work Smarter
After closing, continue to manage your mortgage strategically:
- Refinance when rates drop or when your property has gained equity.
- Monitor rental market trends and adjust rents or expenses.
- Use amortization or extra payments to shorten the term or reduce interest over time.
- Re-evaluate if a property no longer meets performance expectations and consider selling or repositioning.
Bankpricer’s tools and team remain available long after origination to help you reassess and optimize your loan.
Finance Your Next Investment with Confidence
Securing a mortgage on a new investment property demands insight, options, and precision. At Bankpricer, we empower you to compare confidently, lock in competitive terms, and optimize your long-term returns. Whether you’re financing a rental, multi-family building, or a fix-and-flip, our marketplace and expertise give you an edge.
Ready to explore your options? Request a free, personalized rate quote with Bankpricer today and let us help you take your real estate portfolio to the next level.
Contact us now to begin your tailored mortgage comparison.