How to Finance an Investment Property When You’re Self-Employed

If write-offs make your tax returns understate what you really earn, conventional financing fights you. Two products are built for self-employed investors — here is how they work.

Your financing options

Best fit

DSCR Loans

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.

94%
fit
Rate
6.5%–8.5%
LTV
75%–80%
Term
30-year fixed or 5/6 ARM
Min credit
620–680
  • Built for long-term holds
  • Qualifies on the property’s rent, not your personal income

Bank Statement Loans

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.

88%
fit
Rate
7.0%–9.5%
LTV
75%–80%
Term
30-year fixed or ARM
Min credit
660–700
  • Built for long-term holds
  • Uses 12–24 months of bank statements instead of tax returns

Conventional Investment Property Loans

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.

64%
fit
Rate
6.0%–7.5%
LTV
75%–80%
Term
15 or 30-year fixed
Min credit
680–720
  • Built for long-term holds
  • !Conventional needs full tax returns and W-2s — hard for self-employed borrowers

Portfolio Loans

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.

60%
fit
Rate
7.0%–9.0%
LTV
70%–80%
Term
5–30 years (balloon or fully amortizing)
Min credit
650–700
  • Built for long-term holds

Lenders to start with

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Qualify on the property, or on your deposits

A DSCR loan ignores your personal income entirely and qualifies on whether the property’s rent covers the payment. For a self-employed investor that sidesteps the whole tax-return problem — and it closes in an LLC with no property-count cap.

A bank-statement loan is the alternative when you want a more traditional structure: instead of tax returns, the lender averages twelve to twenty-four months of bank deposits to calculate your income. Both carry a rate premium over conventional, but they approve deals a DTI-based loan would reject.

Frequently asked questions

Can I get an investment property loan without tax returns?

Yes. DSCR loans qualify on the property’s rental income, and bank-statement loans use 12–24 months of deposits — neither requires tax returns, which is why both are popular with self-employed investors.

Which is better for a self-employed investor, DSCR or bank-statement?

DSCR is usually simpler and scales better (no income docs, no property cap), while a bank-statement loan can offer better pricing if your deposits are strong and consistent. The matcher weighs your full situation to suggest which fits.

More financing scenarios