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6 Best Investment Property Loans for 2025

Loans for investment properties can vary significantly, but ultimately, the best investment property loans have a low interest rate, a term length that fits your investment plan, and reasonable eligibility requirements for investors.  That said, here are my picks for the six best investment property lenders: Best investment property loans compared Kiavi: Best for quick […]

Aug 21, 2025
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Loans for investment properties can vary significantly, but ultimately, the best investment property loans have a low interest rate, a term length that fits your investment plan, and reasonable eligibility requirements for investors. 

That said, here are my picks for the six best investment property lenders:

  • Kiavi: Best for quick and easy funding
  • Lima One Capital: Best for flexible rental property financing
  • Visio Lending: Best for short-term rental properties
  • RCN Capital: Best for experienced investors
  • Lendio: Best for commercial properties 
  • Pennymac: Largest variety of investment property loans

Best investment property loans compared

Funding types offeredTerms
kiavi logo
  • Fix and flip loan
  • Bridge loan
  • New construction
  • DSCR rental
  • Rental portfolio loan
  • Jumbo loans
DSCR loan terms:
  • Interest rates: As low as 6.75%
  • Loan terms: 30-year fixed rates
  • Time to funding: As little as 7 days
  • Minimum credit score: 660
Visit Kiavi
Lima one capital logo
  • Rental portfolio loan
  • Single-family rental loan
  • Short-term rental loan
  • Fix and flip loan
  • Bridge loans
  • New construction
Single-family rental loan terms:
  • Loan amount: $75,000-$2.5 million
  • Interest rates: Starting at 6.5%
  • Loan terms: Fixed rate or interest-only options
  • Time to funding: As little as 7-10 business days
  • Minimum credit score: 660
Visit Lima One Capital
visio lending logo
  • DSCR loan for short-term rentals
  • DSCR loan for long-term rentals
DSCR loan terms:
  • Loan amount: Starting at $75,000
  • Loan terms: 30-year fixed rate
  • Minimum credit score: 680
Visit Visio Lending
RCN capital
  • Multifamily loan
  • Fix and flip loan
  • New construction loan
  • Investor rental portfolio loan
Long-term rental loan terms:
  • Loan amount: $55,000-$2 million
  • Interest rates: Starting at 5.75%
  • Loan terms: 30-year fixed, ARM, and hybrid options
  • Minimum credit score: 660
Visit RCN Capital
lendio logo
  • Conventional commercial mortgage loans
  • SBA 504
  • SBA 7(a)
  • SBA microloans
  • Business loans and lines of credit
Commercial mortgage loan terms:
  • Loan amount: $250,000-$5 million
  • Interest rates: As low as 4.5%
  • Loan terms: 10-25 years
  • Time to funding: 4-8 weeks
  • Minimum credit score: 650
Visit Lendio
Pennymac logo
  • Conventional mortgage
  • FHA loan
  • VA loan
  • Adjustable rate (ARM)
  • Jumbo loan
  • USDA streamline
  • Investment property loan
  • Second home loan
Conventional mortgage loan terms:
  • Interest rates: Starting at 6.1%
  • Loan terms: 15-30 year fixed rate
  • Time to funding: Within 60 days
  • Minimum credit score: 620
Visit Pennymac

Kiavi: Best for quick and easy funding

kiavi logo
Pros
  • User-friendly application process with fast funding (7 to 10 days)
  • No tax or personal income documentation needed
  • Flexible loan terms
  • Available in 45 states
Cons
  • Interest rates and terms depend on your creditworthiness
  • Limited rental loan options
  • Unavailable in Mississippi, New Mexico, Rhode Island, Utah, and Vermont
Loan types
  • Fix and flip loan
  • Bridge loan
  • New construction
  • DSCR rental
  • Rental portfolio loan
  • Jumbo loans

DSCR loan terms
  • Loan terms: 30-year fixed rates
  • Interest rates: As low as 6.25%
  • Time to funding: As little as 7 days
  • Minimum credit score: 660
  • Adjustable-rate mortgage options
  • Up to 80% loan-to-value (LTV)
  • Single-family rentals (SFR), manufactured homes, PUDs, and condos
Visit Kiavi

Why I chose Kiavi

Kiavi is an online real estate lender that offers a variety of the best loans for real estate investors, from fix and flip loans to rental portfolio loans. It even topped our list of the best fix and flip loan providers for its easy process. Its online platform makes the application and funding process very easy and allows you to get funding in as little as seven days, depending on the type of loan and size. 

The lender also offers competitive rates for applicants with strong credit. While its rental property loan selection is more limited, it stands out as a good choice if you value a straightforward, fast lending experience.

Lima One Capital: Best for flexible rental property financing

Lima one capital logo
Pros
  • Multiple rental property loan options
  • Flexible and customizable loan terms
  • Long-term, short-term, and rental portfolio loan options
Cons
  • Certain types of interest rates may be higher than other lenders
  • Unclear fees
  • No loan offerings in Alaska, North Dakota, South Dakota, or Vermont
Loan types
  • Rental portfolio loan
  • Single-family rental loan
  • Short-term rental loan
  • Fix and flip loan
  • Bridge loans
  • New construction

Single-family rental loan terms
  • Loan amount: $75,000 to $2.5 million
  • Loan terms: Fixed rate or interest-only options
  • Interest rates: Starting at 6.35%
  • Time to funding: As little as 7 to 10 business days
  • Minimum credit score: 660
  • LTV: Up to 80% on purchase, up to 75% on rate/term refi and cash out
Visit Lima One Capital

Why I chose Lima One Capital

Lima One Capital is another online lender that offers a variety of funding for different types of investors, like commercial property investors, developers, and flippers. It stands out from other lending options because of its loan options for rental property owners.

It offers three different types of rental property loans, each with very flexible terms: portfolio rental, single-family rental, and short-term rental loans. Because of this range of options, I recommend Lima One Capital if you’re seeking flexible rental property financing.

Rental loan customization options
Rental loan customization options (Source: Lima One Capital)

Visio Lending: Best for short-term rentals

visio lending logo
Pros
  • Simple application process
  • No income documentation required
  • Purchase, refinance, and cash-out options available
  • No balloon payments
Cons
  • Requires a down payment of 20-30%
  • Only offers DSCR loans
  • Doesn’t offer loans in Oregon, Nevada, Utah, Idaho, North Dakota, South Dakota, Nebraska, Minnesota, Vermont, Rhode Island, or Delaware
Loan types
  • DSCR loan for short-term rentals
  • DSCR loan for long-term rentals

DSCR loan terms
  • Loan amount: Starting at $75,000
  • Loan terms: 30-year fixed rate
  • Minimum credit score: 680
  • LTV: Up to 80%
Visit Visio Lending

Why I chose Visio Lending

With Visio Lending, there are two types of DSCR loans for rentals: one for long-term rental properties and another for short-term rental properties. DSCR loans are one of the best loans for an investment property because they are based on the income generated by your rentals instead of your personal income. Plus, Visio’s short-term rental loan offers a fixed rate and up to 80% loan-to-value, making it easy for you to grow or start a vacation property investment.

RCN Capital: Best for experienced investors

RCN capital
Pros
  • Increasingly competitive rates based on your business history
  • Low interest rates for long-term loans
  • Multiple loan term options
  • Simple online application process
Cons
  • LTC ratios vary based on your credit score
  • Unclear fee structure
  • No short-term rental loans
Loan types
  • Multifamily loan
  • Fix and flip loan
  • New construction loan
  • Investor rental portfolio loan

Long-term rental loan terms
    • Loan amount: $150,000 to $1.5 million
    • Loan terms: 30-year fixed, ARM, and hybrid options
    • Interest rates: Starting at 5.50%
    • Minimum credit score: 680
    • Eligible properties: Non-owner-occupied properties with 1 to 4 units, condos, townhomes, and PUDs
    • LTV:
      • Purchase: Lesser of up to 80% of the As-Is Value or up to 80% Loan-to-Cost
      • Refinance: Up to 80% of the As-Is Value
      • Cash-Out: Up to 75% of the As-Is Value
Visit RCN Capital

Why I chose RCN Capital

RCN Capital is known for its broad selection of investment property loans, covering everything from new construction to portfolio financing and long-term rental loans. It stands out for its practice of shaping loan terms around your credit history and business performance, which can give experienced investors more flexibility in how they structure their financing.

For example, its long-term rental loan will finance up to 80% LTV if you have a credit score over 700. If your credit score is under 680, it will only cover up to 70% LTV. This makes RCN Capital the best loan for experienced investors to get the best rates.

LTV and LTC ratios by credit score
LTV and LTC ratios by credit score (Source: RCN Capital)

Lendio: Best for commercial properties

lendio logo
Pros
  • Lowest commercial mortgage starting interest rates
  • Simple online application process
  • Excellent online rating (4.7 on Trustpilot with over 21,000 reviews)
Cons
  • No loans for rental property owners
  • Potential for added fees depending on the lender
  • Exact rates and terms will vary until after you apply
Loan types
  • Conventional commercial mortgage loans
  • SBA 504
  • SBA 7(a)
  • SBA microloans
  • Business loans and lines of credit

Commercial mortgage loan terms
  • Loan amount: $250,000 to $5 million
  • Loan terms: 10 to 25 years
  • Interest rates: As low as 4.5%
  • Time to funding: 1 to 3 months
  • Minimum credit score: 650
  • Required time in business: At least 2 years
Visit Lendio

Why I chose Lendio

Lendio isn’t a direct loan provider; instead, it is an online loan marketplace with over 75 partnering lenders. Even though it isn’t a real estate-specific lender, it has the ability to offer some of the most competitive commercial real estate loans on the market.

It is one of the few online loan brokers to provide a conventional commercial mortgage option with flexible terms and the ability to get funding in eight weeks or less. It also has SBA loans, which are ideal for funding commercial real estate. Overall, it offers the best investment property loans for commercial real estate investors and even makes our list as one of the best commercial real estate lenders.

Pennymac: Largest variety of investment property loans

Pennymac logo
Pros
  • Conventional, FHA, VA, and jumbo mortgage options
  • Low interest rates
  • Investment property loan down payments as low as 15%
  • Excellent online reviews
Cons
  • Loans are not designed specifically for investors
  • No HELOC options
  • May have strict qualification requirements
Loan types
  • Conventional mortgage
  • FHA loan
  • VA loan
  • ARM
  • Jumbo loan
  • USDA streamline
  • Investment property loan
  • Second home loan

Conventional mortgage loan terms
  • Loan terms: 15- to 30-year fixed rate
  • Interest rates: Starting at 6.1%
  • Time to funding: Within 60 days
  • Minimum credit score: 620
  • DTI ratio: 50% or less
Visit Pennymac

Why I chose Pennymac

Pennymac is a mortgage lender that offers the widest variety of real estate loans on this list. While many of its mortgage loans are meant for residential properties, they can be used for investment properties and even have benefits like a low 15% down payment. 

It is one of the few investment property loan providers that offers VA loans for primary residences and investment properties. Keep in mind that mortgages typically offer the lowest interest rates of all the types of investment loans — for example, Pennymac’s current interest rate for a jumbo mortgage starts at just 5.875%. 

Methodology: How I evaluated the best investment property loans

Our methodology at The Close is to provide real estate business owners with the most accurate and objective information to help them make the right business decisions. Our team of professionals, researchers, writers, real estate agents, and experts has done detailed research to evaluate the best lenders for real estate investors. 

Our criteria include:

  • Loan types: Since there are many different ways to invest in real estate, I looked for loan providers that offered a range of financing options for investors.
  • Loan terms: I carefully considered the terms of each loan that I chose as the best loan for investment property owners, looking specifically at interest rates, short and long-term payment structures, and fees.
  • Eligibility: I chose loan options with eligibility requirements that most real estate investors can meet, looking at business requirements, minimum credit scores, and types of properties the lender approved.
  • Availability: Given that the intent is to support investors all over the country, I chose providers with a wide reach.
  • Customer reviews: I selected lenders with strong reputations and excellent customer reviews.

Factors for choosing the best loan for your investment property

When residential home buyers think about buying a home, they only have a few options to choose from. In contrast, investors have quite a few financing options spanning various loan types and lenders. As such, it can be hard to pinpoint what type of financing might best suit your investment needs. 

There are a few factors you should take into consideration before signing on the dotted line of a loan agreement. Here’s what you need to review when choosing between the best lenders for investment properties:

  • Type of investing: Consider how you’ve invested in real estate so far and your future plans. This may help you get a clearer understanding of what you can afford and how your ideal loans should be structured.
  • Type of financing: Each type of loan offers different interest rates, eligibility criteria, and terms, so see to it that you understand the pros and cons of all your options.
  • Eligibility and terms: In general, financing options with fewer eligibility criteria have higher interest rates. Ensure you understand what you can qualify for and the specific long-term impact of each potential choice.

Looking to start investing in commercial real estate? Check our guide on how to buy commercial real estate to get started.

Types of investment property loans 

In general, investment property loans are mortgages or loans that are used to finance an income-generating property, like rental properties or commercial properties. When people talk about loans for investment properties, they could actually be referencing a wide range of loans. 

However, the following are generally considered the best loans for investment property:

TypeProsCons
Conventional loans (mortgages)
  • Low interest rates
  • Predictable payments
  • Easy to find
  • Long-term loans (15-30 years)
  • Strict qualification requirements
  • Often requires a down payment of 20% or more
  • Limited to specific types of properties
DSCR loans (debt service coverage ratio)
  • Approval is based on rental income, not personal income
  • Fewer qualification requirements, ideal for self-employed investors
  • Higher interest rates
  • Requires a significant rental income
  • May require a large down payment
Portfolio loans
  • Simplifies financing by offering one loan for multiple properties
  • Often offers interest-only options
  • Customizable terms
  • Higher interest rates
  • Limited availability
  • May require a large down payment
Commercial investment loans
  • Flexible terms (often range from 5-20 years)
  • Large loan amounts to fund large properties
  • Often has strict qualification requirements
  • May require a large down payment
Home equity loans
  • Low interest rates
  • Flexible terms
  • Unrestricted use of funds
  • Ability to make use of existing home equity
  • Must use your home as collateral
  • Only provides as much equity as you have in your home
  • May have added fees

Alternative loans for investment properties

There are different types of real estate investing, each of which requires various steps and strategies. That said, you might need to explore other financing opportunities if none of the typical methods fit your needs.

  • Hard money loans: Best for fix-and-flip investors or those looking for short-term financing, these loans come from a hard money lender. It typically has fewer eligibility requirements but higher interest rates. For options, check our guide to the best hard money lenders
  • Business loans: General business loans can be used when you don’t meet the criteria for real estate-specific financing. They can be short or long-term but may have higher interest rates than conventional financing. These are typically a good option if you need to do renovation or maintenance work for a property. Consider a broker such as Lendio to help you review your options. Visit Lendio to learn more.
  • Bridge loans: These short-term loans are meant to be used when there’s a gap between your immediate financial needs and your long-term financing plan. Bridge loans are perfect if you have quick investment projects that you plan to sell or refinance.
  • FHA loans: FHA loans are provided by the Federal Housing Administration. There are FHA loans for primary residences and FHA loans specifically made for multifamily properties, which typically offer more flexible qualification criteria. For more details, read our guide on FHA loan requirements.

Frequently asked questions (FAQs)

The most common and most popular type of loan for investment properties is a conventional mortgage. However, owners of multiple rental properties often use portfolio loans (or blanket loans) to consolidate their payments. DSCR loans are also popular options for rental property owners to finance an investment based on their property’s revenue and not their personal income.

While most investment property financing will require 20% to 30% down, this can vary widely, and there are exceptions depending on the loan type, the lender’s preference, and your creditworthiness as a borrower.

Not necessarily. It really comes down to your experience and qualifications. Getting a loan for an investment property can be more challenging than getting a mortgage for your primary home, as investment properties are considered to be riskier. As such, they tend to have higher eligibility requirements, and you typically need a larger down payment.

thumbnail Lauren McKinley

Lauren McKinley is a financial professional with five years of experience in credit analysis, commercial loan administration, and banking operations. She has worked at regional lending institutions across the Northeast, evaluating risk, analyzing financials, and managing loan processes. Specializing in commercial real estate and small business financing, Lauren has helped diverse borrowers navigate financial solutions.

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