Typical requirements: 20–25% down, credit usually 640–680+, cash reserves (often 6+ months), and either personal income (conventional) or the property’s cash flow (DSCR) to qualify.
Down payment, credit & reserves
Investment loans carry higher down payments (commonly 20–25%), stronger credit expectations, and reserve requirements. The upside: rental income can help you qualify, and DSCR loans skip personal-income documents entirely.
Which loan type fits
Three main paths: conventional investment loans (qualify on your income), DSCR loans (qualify on the property’s rent-to-payment ratio), and portfolio loans for investors scaling past conventional limits. We match the property and your goals to the right one.
| Requirement | Typical |
|---|---|
| Down payment | 20–25%+ |
| Credit | ~640–680+ |
| Reserves | Often 6+ months |
| Qualify on | Your income (conv.) or rent (DSCR) |
Frequently asked questions
How much down do I need for a rental?
Commonly 20–25%. Lower down payments generally aren’t available for pure investment properties.
Can I qualify on the rent instead of my income?
Yes — a DSCR loan qualifies on the property’s cash flow, not your personal income or DTI.
Do I need reserves?
Usually — several months of payments in reserve is common for investment financing.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.