The Complete Guide
How to Finance a Real Estate Investment
There are more ways to fund a deal than most investors realize — and the right one depends entirely on the deal and your situation. This is the complete, lender-neutral map of every option, from conventional and DSCR loans to hard money, commercial debt, and creative finance. If you're not sure what you need or where to get it, start with the matcher.
Not sure what you need? Match your deal.
Answer a few questions about your deal and we'll recommend the financing types that fit, with the reasoning and lenders to start with — something no single lender can do, because each one only sells what it offers.
Long-Term / Hold
Permanent financing for buy-and-hold rental properties
DSCR Loans
6.5%–8.5%DSCR (Debt Service Coverage Ratio) loans qualify based on the property's rental income, not your personal income or W-2s. The most popular loan product for buy-and-hold real estate investors scaling a rental portfolio.
Best for: Buy-and-hold rental investors
DSCR lenders & details →Conventional Investment Property Loans
6.0%–7.5%Traditional Fannie Mae/Freddie Mac-backed mortgages for investment properties. The lowest rates available for investors, but require personal income qualification and are limited to 10 financed properties.
Best for: Investors with strong W-2 or documented income
Conventional lenders & details →Portfolio Loans
7.0%–9.0%Portfolio loans are held by the originating bank (not sold to Fannie/Freddie), giving lenders flexibility on guidelines. Ideal for investors with 5+ properties who need blanket financing or flexible underwriting.
Best for: Investors with 5+ rental properties
Portfolio lenders & details →Short-Term / Acquisition
Fast financing for flips, rehabs, and bridge situations
Hard Money Loans
10%–14%Short-term, asset-based loans primarily used for fix-and-flip projects and bridge financing. Fast closings (7–14 days), minimal borrower qualification, but higher rates and shorter terms than permanent financing.
Best for: Fix-and-flip investors
Hard Money lenders & details →Fix-and-Flip Loans
9%–13%Purpose-built short-term loans that fund both the purchase and renovation of investment properties intended for resale. Similar to hard money but often from tech-enabled lenders with streamlined processes.
Best for: Experienced flippers doing 3+ deals per year
Fix & Flip lenders & details →Bridge Loans
8%–12%Short-term financing that bridges the gap between acquiring a property and securing permanent financing or selling. Used for value-add acquisitions, lease-up periods, and time-sensitive purchases.
Best for: Value-add multifamily acquisitions
Bridge lenders & details →Construction Loans
9%–13%Financing for ground-up construction of investment properties, from single-family spec homes to build-to-rent developments. Funds disbursed in draws as construction milestones are completed.
Best for: Build-to-rent developers
Construction lenders & details →Transitional / Hybrid
Bridge-to-permanent products for BRRRR and value-add strategies
Specialty
Commercial, SBA, bank statement, and private money products
Commercial Real Estate Loans
5.5%–9.0%Financing for 5+ unit multifamily, office, retail, industrial, and mixed-use investment properties. Includes agency debt (Fannie/Freddie Small Balance), CMBS, bank loans, and private credit.
Best for: Multifamily investors (5+ units)
Commercial lenders & details →Bank Statement Loans
7.0%–9.5%Non-QM loans that use 12–24 months of bank statements instead of tax returns to verify income. Designed for self-employed investors and business owners whose tax returns understate their actual income.
Best for: Self-employed investors and business owners
Bank Statement lenders & details →Private Money Loans
8%–15%Loans from individual private investors, family offices, or small funds — outside the institutional lending system. The most flexible financing available, with terms negotiated directly between borrower and lender.
Best for: Investors with established personal networks
Private Money lenders & details →SBA Loans
5.5%–8.0%Small Business Administration-backed loans (SBA 504 and 7(a)) for owner-occupied commercial real estate. Low down payments (10%) and competitive rates for investors who operate a business from the property.
Best for: Investors who will occupy 51%+ of the property
SBA lenders & details →Creative Financing
When institutional debt doesn't fit — low cash, tricky credit, or an unusual deal — these are the levers experienced investors pull. Each trades simplicity for flexibility, so know the risks going in.
HELOC / Cash-Out Refinance
Tap equity in a property you already own to fund the next down payment — either a revolving HELOC on top of your mortgage, or a cash-out refinance that replaces it.
Best for: Investors with equity and not enough fresh cash for the next deal.
Open the calculator →FHA / VA House-Hacking
Owner-occupied financing on a 2–4 unit: live in one unit and rent the rest. FHA allows as little as 3.5% down; VA can go to 0% for eligible veterans.
Best for: First-timers willing to live in the property for a year.
Seller Financing
The seller acts as the bank and carries a note for you. No institutional qualifying, and the rate, term, and down payment are all negotiable.
Best for: Buyers whose credit or income docs are a hurdle, or who want creative terms.
Subject-To
You take over the seller’s existing mortgage and keep it in place. Powerful when the loan carries a low rate — but mind the lender’s due-on-sale clause.
Best for: Low-cash buyers with a motivated seller and a favorable existing loan.
Lease Option / Rent-to-Own
Control a property with a lease plus the option to buy later at a set price. Lets you lock a deal without financing it today.
Best for: Investors who want control now and financing (or resale) later.
Partnerships & JV
Split the deal: you bring the deal and the work, a partner brings the capital, and you share the returns under a written agreement.
Best for: Operators with strong deals but limited capital of their own.
Transactional Funding
Very short-term funding (often a single day) that lets a wholesaler close an A-to-B purchase and immediately resell B-to-C, without using their own cash.
Best for: Wholesalers executing a same-day double close.
Financing Calculators
Run the numbers before you commit.
Financing by Scenario
Plain-English playbooks for specific situations.