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Loan Types Overview

MoneyMatcher connects you with lenders offering a wide range of investment property loans. Understanding the different loan types will help you choose the right financing for your deal.

Quick Comparison​

Loan TypeBest ForSpeedCreditIncome Docs
DSCRCash-flowing rentals14-21 days660+Not required
ConventionalStrong credit/income30-45 days680+Required
BridgeFix-and-flip7-14 days620+Varies
Hard MoneyQuick closings3-10 days600+Not required
Commercial5+ units, large deals45-90 days680+Required
PortfolioMultiple properties21-30 days660+Flexible

1. DSCR Loans (Debt Service Coverage Ratio)​

What It Is​

Loan qualification based on property income, not your personal income.

Key Features​

  • ✅ No tax returns required
  • ✅ No W-2s or pay stubs
  • ✅ No DTI calculation
  • ✅ Qualify with property cash flow alone
  • ✅ Close in LLC name

Requirements​

  • DSCR Ratio: 1.0 - 1.25 minimum
  • Credit Score: 660-720+ (depending on DSCR)
  • Down Payment: 20-25%
  • Property: 1-4 units, condos

Rates & Terms​

  • Rates: 7.5% - 10.5%
  • Terms: 30-year fixed or 5/1 ARM
  • Loan Amount: $100K - $3M+

Best For​

  • Self-employed investors
  • High-income earners with complex tax returns
  • Investors scaling rapidly
  • Those prioritizing speed and simplicity

Learn More: DSCR Loans →

2. Conventional Investment Loans​

What It Is​

Traditional mortgages through Fannie Mae or Freddie Mac guidelines.

Key Features​

  • ✅ Lowest rates available
  • ✅ Up to 10 financed properties
  • ✅ Cash-out refinancing available
  • ✅ Established regulations and processes

Requirements​

  • Credit Score: 680+ (720+ for best rates)
  • Down Payment: 20-25%
  • Reserves: 6 months PITIA
  • DTI: Maximum 45-50%
  • Income: 2 years W-2/tax returns

Rates & Terms​

  • Rates: 6.5% - 8.5%
  • Terms: 15 or 30-year fixed
  • Loan Amount: Up to $726,200 (2024 conforming limit)

Best For​

  • W-2 employees with stable income
  • Investors seeking lowest rates
  • First-time rental property buyers
  • Long-term buy-and-hold investors

Learn More: Conventional Loans →

3. Bridge Loans​

What It Is​

Short-term financing for properties needing renovation or quick closings.

Key Features​

  • ✅ Fast closings (7-14 days)
  • ✅ Renovations costs included
  • ✅ Interest-only payments
  • ✅ Transition to long-term financing

Requirements​

  • Credit Score: 620+
  • Down Payment: 20-30%
  • Exit Strategy: Clear plan to pay off
  • Property: Any type, any condition

Rates & Terms​

  • Rates: 9% - 13%
  • Terms: 6-24 months
  • Loan Amount: $50K - $5M

Best For​

  • Fix-and-flip investors
  • Auction purchases
  • Properties needing significant repairs
  • BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat)

Learn More: Bridge Loans →

4. Hard Money Loans​

What It Is​

Asset-based loans focused on property value, not borrower credit.

Key Features​

  • ✅ Fastest closing (3-10 days)
  • ✅ Credit flexible (600+ accepted)
  • ✅ No income verification
  • ✅ Experience matters more than credit

Requirements​

  • Credit Score: 600+ (some lenders 580+)
  • Down Payment: 25-35%
  • LTV: Maximum 65-75%
  • Property: Must have equity/value

Rates & Terms​

  • Rates: 10% - 15%
  • Terms: 6-24 months
  • Points: 2-5 points upfront
  • Loan Amount: $50K - $10M+

Best For​

  • Time-sensitive deals
  • Borrowers with credit issues
  • Unique properties
  • Experienced investors who can move quickly

Learn More: Hard Money Loans →

5. Commercial Loans​

What It Is​

Financing for larger investment properties (5+ units, retail, office, industrial).

Key Features​

  • ✅ Higher loan amounts ($1M+)
  • ✅ Various structures (recourse/non-recourse)
  • ✅ Flexible terms
  • ✅ Portfolio cross-collateralization options

Requirements​

  • Credit Score: 680+
  • Down Payment: 25-35%
  • DSCR: 1.25+ typically
  • Property: 5+ units, commercial use

Rates & Terms​

  • Rates: 7% - 11%
  • Terms: 5-25 years
  • Amortization: 20-30 years
  • Loan Amount: $1M - $50M+

Best For​

  • Apartment building investors
  • Commercial real estate
  • Large portfolio acquisitions
  • Experienced investors scaling up

Learn More: Commercial Loans →

6. Portfolio Loans​

What It Is​

Loans held by the lender (not sold to Fannie/Freddie), allowing flexible underwriting.

Key Features​

  • ✅ Flexible guidelines
  • ✅ More than 10 properties
  • ✅ Unique situations
  • ✅ Custom solutions

Requirements​

  • Varies by lender
  • Typically more flexible than conventional
  • May allow creative structures

Rates & Terms​

  • Rates: 7.5% - 11%
  • Terms: Negotiable
  • Loan Amount: Varies widely

Best For​

  • Investors with 10+ financed properties
  • Unique property types
  • Non-standard income situations
  • Foreign nationals

How to Choose the Right Loan Type​

Consider These Factors​

1. Timeline

  • Need to close in 7 days? → Hard Money or Bridge
  • Standard closing (30 days)? → Conventional or DSCR
  • Can wait 60+ days? → Commercial

2. Property Condition

  • Turnkey rental? → DSCR or Conventional
  • Needs repairs? → Bridge or Hard Money
  • New construction? → Commercial or Conventional

3. Your Credit & Income

  • Strong W-2 income? → Conventional (lowest rates)
  • Self-employed? → DSCR (no tax returns)
  • Credit challenges? → Hard Money (most flexible)

4. Hold Strategy

  • Long-term rental? → DSCR or Conventional
  • Flip in 6-12 months? → Bridge or Hard Money
  • Commercial hold? → Commercial

5. Cost vs. Speed Tradeoff

Lowest Cost ← → Fastest Closing

Conventional → DSCR → Bridge → Hard Money
  6.5%         8.5%    11%       13%
 45 days      21 days  10 days   5 days

Not Sure Which Loan Type?​

That's exactly why MoneyMatcher exists!

Our AI analyzes your specific situation and matches you with lenders offering the loan types that best fit:

  • Your property
  • Your timeline
  • Your credit profile
  • Your investment goals

Start Your Application →

Get matched with the right loan type in 24-48 hours.

Questions?​