Loans for real estate investors

Which loans work best for real estate investors?

A bridge loan works best for a fix and flip or a building that needs work before it can be rented, because it closes in weeks and funds the renovation in draws. A DSCR rental loan works best for a stabilized rental you plan to hold, because the lender qualifies the property on its rent and ignores your personal income. A commercial real estate loan works best for apartment buildings of five or more units, retail, office and industrial property.

• Bridge: 6 to 24 months, interest only, 65% to 80% of cost, 9% to 14% plus 1 to 3 points.
• DSCR rental: 30 year fixed or adjustable, 70% to 80% loan to value, 6.5% to 9%.
• Commercial: 5 to 10 year terms, 20 to 25 year amortization, 65% to 75% loan to value.

What do lenders like and dislike about real estate investors?

Lenders like a track record of completed deals, a schedule of real estate owned that shows equity, liquid reserves of six months or more of payments, and properties in markets with steady rents and resale demand.

They dislike first time investors on construction heavy projects, properties bought at the top of a market with thin margins, leverage stacked across many properties with little equity, and rural or unusual property types that are hard to appraise and resell. Short term rentals are underwritten cautiously, often on long term rent rather than nightly income. An exit that depends on prices rising is the deal lenders decline most.

How much can a real estate investor borrow?

Loans are sized by the property. Bridge lenders advance 65% to 80% of purchase price and 100% of the renovation budget in draws, capped at 65% to 75% of the after repair value. DSCR lenders lend 70% to 80% of value as long as rent covers the payment with a ratio of 1.0 to 1.25 or better. A duplex renting for $3,600 a month with a $2,800 payment has a ratio of about 1.29 and will usually qualify. Use the DSCR calculator and read DSCR before you make an offer.

What documents will you be asked for?

Investor lenders focus on the property and your experience, not your business tax returns:

• The purchase contract and, for a refinance, the current mortgage statement
• Rent roll and leases, or market rent analysis for a vacant property
• A renovation scope and budget with contractor bids for bridge loans
• A schedule of real estate owned listing each property, its value, debt and rent
• Entity documents, since most lenders close in an LLC
• Bank statements showing the down payment and reserves

DSCR lenders usually do not ask for personal tax returns. The document checklist covers the rest.

What are the common uses of funds?

Investor loans typically pay for one of these.

• A fix and flip: a $300,000 bridge loan covering 80% of the purchase and the full $60,000 renovation, repaid at sale in nine months.
• A buy and hold rental: a DSCR loan at 75% of value on a fourplex, qualified on its rent.
• Refinancing after a renovation: pulling the bridge loan into a 30 year DSCR loan and recovering most of the cash invested.
• A small apartment building: a commercial loan at 70% of value with a 25 year amortization.
• A quick close: a portfolio line draw for the deposit and purchase, refinanced later. See fast funding.

What usually gets a real estate investor application declined?

The most common reasons are too little cash for the down payment and reserves, an after repair value the appraisal does not support, and a renovation budget that leaves no margin. Lenders also decline on credit scores under about 660, no completed deals on a construction heavy project, properties with title or condition problems, and rents that do not cover the payment. Commercial declines add environmental findings and leases that expire soon. Many properties with little equity in any of them is a decline for over leverage. Why loans get denied covers the fixes.

How to apply

Apply once here with the property details, your schedule of real estate owned and your reserves, and your application reaches bridge, DSCR and commercial lenders together. You can also connect your AI assistant to our MCP server through the agents hub and have it read your documents, fill the application and submit it. It is free to the investor, and offers come back to the same place so you can compare leverage, rate and points.