The main paths for a buy-and-hold rental
If you have documented W-2 or tax-return income and are still building your first ten properties, a conventional investment loan gives you the lowest rate available. The trade-offs are full income documentation and the ten-financed-property cap that Fannie and Freddie impose.
If you are self-employed, scaling past that cap, or simply want to qualify on the property rather than your personal income, a DSCR loan is the workhorse of buy-and-hold investing. It qualifies on the rent the property produces, closes in an LLC, and has no limit on the number of financed properties — at a rate roughly one to two points above conventional.
Portfolio and bank-statement loans fill the gaps: portfolio loans (often blanket loans across several properties) when you have a banking relationship or non-conforming property, and bank-statement loans when your tax returns understate your real income.
How to choose
Start with the cheapest money you qualify for and work outward. Conventional first if your income documents and property count allow it; DSCR when they do not; portfolio or bank-statement when your situation is unusual. The matcher above weighs your credit, income docs, entity, and portfolio size to rank these for your exact deal.
Frequently asked questions
What credit score do I need to finance a rental property?
Conventional investment loans generally want 680+, while DSCR loans start around 620–680. Lower scores push you toward DSCR, portfolio, or private money, usually at a higher rate and a lower loan-to-value.
How much down payment is required for a rental property?
Plan on 15–25% down for a single-family investment property with conventional or DSCR financing, and around 25% for 2–4 units. If you live in one unit, owner-occupied financing can drop that to as little as 3.5%.