Conventional is the only mainstream loan type that allows investment properties. No VA, no FHA. Here is how to finance your rental property.
Minimum 15% down (25% for best rates). Credit score 700+. Reserves of 6 months PITI for each financed property. Rental income can count at 75% of market rent with a signed lease or appraisal.
Investment property rates are typically 0.5-0.75% higher than primary residence. On a $350K rental, expect ~6.5% vs 5.99% for primary. PMI is higher too — plan for 20%+ down to avoid it entirely.
Buy a 2-4 unit property, live in one unit, rent the others. This qualifies as primary residence — meaning 5% down, primary rates, and rental income to qualify. The best first investment move. Qualification guide →
As an independent broker, Valley West shops 50+ lenders for investment property rates. Many banks only offer in-house products. We find the lowest rate across the wholesale market — saving you $100-$300/month vs going direct.
