5 Best Investment Property Loans in 2026
The best investment property loans typically offer a mix of low fees, competitive interest rates, and flexible qualification criteria. Many top lenders also stand out for responsive customer support, quick funding timelines, and streamlined underwriting that can reduce the amount of paperwork required.
This guide can help you compare the best loans for investment properties, whether you need long-term financing to purchase a rental or short-term funding for renovations, repairs, or other project costs. Because the right loan depends on your goals, budget, and experience level, I’ve included a range of lenders and loan types designed to fit different investing strategies and financial situations.
Here are my top five picks:
- RCN Capital: Best overall for long-term rentals
- Kiavi: Best for debt service coverage ratio (DSCR) loans
- Visio Lending: Best for vacation rentals
- U.S. Bank: Best for traditional banking services
- Lendio: Best line of credit for short-term expenses
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Best investment property loans at a glance
RCN Capital: Best overall for long-term rentals
I chose RCN Capital as the best overall lender for investment property loans because it advertises the lowest starting rates in this guide. It also finances a broad range of property types, including 1 to 4-unit homes, condos, townhomes, and planned unit developments. Borrowers can pick from multiple repayment structures, too, including hybrid ARMs, fixed-rate terms, and interest-only options.
Qualification requirements vary based on whether you’re buying or refinancing, but in general, stronger credit can help you qualify with a smaller down payment. One key eligibility rule to keep in mind is that the property must appraise for at least $115,000 in its as-is condition, regardless of how strong your application is.
Even though its long-term rental loans stood out the most to me, RCN Capital also offers several other programs, including fix-and-flip financing, multifamily loans, new construction funding, and rental portfolio loans.
If you want to learn more or apply, head to the RCN Capital website.
Kiavi: Best for DSCR loans
I recommend Kiavi’s DSCR rental loans if you want financing that’s built around a property’s cash flow. This option can be a good fit for investors who are self-employed, have variable income, or simply prefer a more streamlined documentation process.
Loan terms and pricing can vary based on factors like the DSCR itself, your credit profile, and the property’s details. That said, stronger property performance can help you qualify for better terms. Eligible properties typically include single-family rentals, planned unit developments, and smaller multifamily homes, such as two- to four-unit properties.
You can apply directly through Kiavi’s website and connect with a representative there to confirm current DSCR requirements, eligible property types, and available terms.
Visio Lending: Best for vacation rentals
Visio Lending can offer competitive rates, flexible loan terms, and easy documentation requirements for its DSCR loans and vacation rental program, a program meant to grow with you as an investor. There is no limit on how many properties it can finance, so it’s a good option if you are aggressively growing your investment portfolio.
It can provide you with funding for a wide variety of property types, such as single-family homes, condos, and townhomes. Properties ineligible for financing include manufactured homes, mobile homes, vacant land, and log homes. Income is not considered as part of the lender’s evaluation, so this tends to lead to an easy application process since you won’t have to provide certain income documents, like tax returns or W-2s.
Visio Lending currently offers financing in 38 states
It doesn’t originate loan programs in Alaska, Delaware, Idaho, Minnesota, Nebraska, Nevada, North Dakota, Oregon, Rhode Island, South Dakota, Utah, and Vermont.
and Washington, D.C. To apply, you can contact the provider using its toll-free number. You can also submit an online form requesting a callback.
U.S. Bank: Best for traditional banking services
If you want financing from a traditional, full-service bank, U.S. Bank can be a good option. One of the advantages of getting financing from this lender is the fact that you can house multiple products and services under the same roof, offering you the ability to simplify your finances.
Along with investment property loans, U.S. Bank offers a full suite of services, including business banking, credit cards, loans, and lines of credit. It also provides wealth management and advisory support for both individuals and businesses.
The trade-off is that the U.S. Bank often has tighter approval standards than many nonbank lenders. I see it as a better fit if you have strong credit, a solid financial track record, and at least 12 months of reserves.
To learn more or speak with a representative, you can visit the U.S. Bank website.
Lendio: Best line of credit for short-term expenses
I chose Lendio specifically for its line of credit, and recommend it if you need to finance other aspects of your investments outside of an acquisition. It can be used to cover short-term expenses, like emergencies, renovations, and repairs, allowing you to maintain cash flow.
It’s a loan broker with over 75 partnering lenders in its network that can match you with various applicable lenders and loan types specific to your financing needs. It keeps the application process simple and can show you all of your potential financing options with just a single application.
You’ll be paired with a funding specialist who can help you understand and review all of your potential loan options, and they will also guide you through the process of gathering information and documentation and answer any questions you might have.
Specific rates, terms, and qualifications will vary depending on the loan product you need and the lenders you match with. That said, Lendio can still be a great option if you’re an investor who has financing needs that may extend beyond acquiring a property and needs a working capital boost to supplement your project.
To learn more or apply, visit the official Lendio website.
How I chose the best investment property loans
While my background is in commercial real estate, investment property loans have similar terms and requirements that allowed me to determine suitable options. When reviewing investment property lenders, I considered numerous factors that would be most important to real estate investors. I analyzed options that I think would best suit this audience and be applicable to a wide variety of investors, and then made my decisions based on the following:
- Interest rates, fees, and estimated APRs: I determined whether the marketed rates were competitive, fees were transparent and affordable, and APRs were favorable.
- Qualification requirements: I wanted to ensure that the providers I chose would have flexible qualifications so that a wide variety of real estate investors could be considered eligible.
- Loan amount: Maximum loan amounts were an important consideration to ensure that a wide variety of investment scenarios could be funded.
- Loan terms: I chose lenders that offer a wide range of repayment periods for businesses that need either short- or long-term financing for their investments.
- Ease of application: To see to it that you save time, I selected lenders with a fairly simple application process so that businesses can streamline their access to funds.
- Application, approval, and funding speeds: Getting funding for an investment likely requires a quick turnaround time. I’ve chosen options that aim to keep the process simple and get businesses funding as quickly as possible.
- Documentation requirements: I looked for providers with minimal documentation requirements to ensure the process was simple and the borrower wasn’t overwhelmed by paperwork.
- Company info and customer reviews: Lastly, I researched and found information directly from company resources and also factored in customer reviews and experiences to ensure lender reputation.
How to choose a loan provider
When choosing the best lenders for investment properties, you should ensure that the rates and terms offered fit your budget and that the provider can work with your specific property investment needs. Based on my prior banking experience, here’s what I think you should consider when shopping around for a lender:
Alternatives to investment property loans
If you are unable to obtain an investment property loan or are simply exploring all of your applicable financing options, here are some alternatives to consider:
- Hard money loan: A hard money loan offers short-term financing, allowing you to acquire or fund a property that is in need of repairs. Once repairs are completed, the loan can be replaced with a permanent financing source. These loans tend to be more expensive since there’s a bit more risk involved than traditional mortgage loans. To learn more, see our list of the best hard money lenders for options.
- Portfolio loan: A portfolio loan can provide a bit more flexibility than traditional mortgage loans since not all lenders will offer loan amounts high enough to cover your business needs. This is due to the fact that the participating lender won’t sell their loans on the secondary market, which gives them the ability to have more control over their eligibility requirements. Our roundup of the best portfolio lenders for real estate can help you find an option that fits the bill.
- Owner financing: Owner financing differs from a loan offered by a lending institution and often allows you major flexibility in terms of qualification requirements. The property owner will need to agree to finance the property for you, and it’s recommended that you consult an attorney to facilitate the process.
- Commercial real estate (CRE) loan: A CRE loan may be a better option if you’re not looking to invest in a residential property. There are various loan types available, each with differing terms and qualifications. Check out our guide on the best CRE loan rates to learn more.
- Friends and family loan: Instead of a traditional business loan, you can raise money from friends and family to support your investment. While there are tax regulations and applicable interest rates that will need to be taken into account, this is a less formal financing option that can often offer favorable rates and terms.
Frequently asked questions (FAQs)
Investment property rates depend on the loan type, the lender, and how strong your application is. In general, rates can land anywhere from about 5% to 20%, with the exact number varying widely based on factors like your credit, down payment, property type, and whether the loan is long-term or short-term financing.
There are various ways to get an investment property loan, whether through a bank, credit union, broker, or online lender. Whichever lending institution you choose, you should ensure it offers loan programs specific to your investment needs and will work with your budget and qualifications.
They can be more challenging to qualify for than primary residence loans. Lenders often require a larger down payment, stronger credit, and a solid financial track record. You may also need to provide additional documentation about the property itself, especially if projected rental income is part of the approval decision.
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