ProInvestorHub Data Report · 2025
How Real Estate Investors Finance Deals
Real estate investors borrow on different terms than the families they compete with. Using 2025 federal mortgage data covering every state, this report measures the premium investors pay, how often they're denied, how much they borrow through DSCR and business-purpose loans, and where each of those is hardest.
76 bps
Investor rate premium
7.25% vs 6.49% owner-occupant
17.5%
Investor denial rate
of applications denied
72%
DSCR / business-purpose
of investor loans
524,314
Investor loans
$181.6B financed
Key findings
- In 2025, real estate investors paid a median 76 bps higher mortgage rate than owner-occupants (7.25% vs 6.49%) — the premium is widest in Alaska (113 bps) and tightest in Vermont (40 bps).
- District of Columbia denied the largest share of investment-property loan applications in 2025 (31.7%), followed by Hawaii and Maryland; the national investor denial rate was 17.5%.
- Business-purpose lending — the HMDA bucket that captures DSCR and LLC-held investor loans — was most concentrated in New York (86%), Connecticut, and New Jersey, versus 72% nationally.
- The typical investor financed at a 74% median LTV in 2025 — roughly 26% down on a financed purchase.
Year over year: 2024 → 2025
How investor financing shifted in one year. Rates eased, investors borrowed more, and the premium they pay over owner-occupants narrowed across most of the country.
76 bps
Investor rate premium
-12 bps vs 2024
524,314
Investor loans originated
+16.5% vs 2024
$181.6B
Financed volume
+27.6% vs 2024
20.5%
Cash-out share
+3.5 pts vs 2024
72%
DSCR / business-purpose
+2.5 pts vs 2024
17.5%
Investor denial rate
+0.3 pts vs 2024
The investor rate premium compressed in 42 states, held flat in 9, and widened in 0 — the national median fell from 88 bps to 76 bps as the investor median rate eased from 7.5% to 7.25%. Even so, investors still borrowed +16.5% more by count and +27.6% more by dollar volume.
Where the premium compressed most
Largest drop in the investor rate premium, 2024 → 2025.
- Mississippi163 bps → 101 bps (-62 bps)
- Arkansas138 bps → 86 bps (-52 bps)
- Nebraska113 bps → 63 bps (-50 bps)
- Louisiana138 bps → 101 bps (-37 bps)
- South Dakota125 bps → 88 bps (-37 bps)
Where investors gained the most share
Largest rise in investor share of originations, 2024 → 2025.
- North Dakota7.6% → 8.6% (+1.0 pts)
- New York11.6% → 12.6% (+1.0 pts)
- District of Columbia10.9% → 11.8% (+1.0 pts)
- Kansas11.2% → 12.1% (+1.0 pts)
- Oregon6.4% → 7.4% (+1.0 pts)
Year-over-year compares the 2024 finalized Snapshot dataset with the 2025 early-release combined Modified LAR. Both are CFPB HMDA loan-level public data covering the same universe and computed identically; 2025 figures will be reconciled when the 2025 Snapshot publishes.
The map
Switch metrics to see where investor financing is most expensive, most often denied, and most DSCR-driven. Click a state for its full breakdown.
Hover a state for its value; click to open its report.
Full state rankings
Sort by any column. Click a state to open its report.
| Alaska | 113 bps | 20.2% | 5.8% | 7.375% | 75% | 62% | 595 | $189M |
| Louisiana | 101 bps | 14.3% | 13.6% | 7.5% | 75% | 50% | 7,478 | $1.4B |
| Mississippi | 101 bps | 12.3% | 13.1% | 7.5% | 75% | 75% | 5,444 | $856M |
| Alabama | 100 bps | 15.6% | 10.6% | 7.375% | 75% | 70% | 9,484 | $2.0B |
| Hawaii | 100 bps | 25.1% | 16.5% | 7.125% | 68% | 74% | 2,646 | $1.7B |
| Kansas | 100 bps | 8.9% | 12.1% | 7.5% | 75% | 60% | 5,883 | $1.1B |
| South Carolina | 100 bps | 18.4% | 7.2% | 7.25% | 75% | 70% | 8,299 | $2.5B |
| Connecticut | 88 bps | 20.7% | 9.6% | 7.375% | 75% | 83% | 5,463 | $1.9B |
| Florida | 88 bps | 22.7% | 11.9% | 7.25% | 71% | 80% | 47,108 | $17.6B |
| Georgia | 88 bps | 18.3% | 10.0% | 7.25% | 75% | 68% | 19,636 | $5.1B |
| Maryland | 88 bps | 24.9% | 9.0% | 7.375% | 75% | 75% | 9,232 | $2.5B |
| Michigan | 88 bps | 20.6% | 6.8% | 7.5% | 75% | 77% | 11,632 | $4.8B |
| Missouri | 88 bps | 11.5% | 12.2% | 7.375% | 75% | 65% | 14,413 | $2.7B |
| New Jersey | 88 bps | 18.2% | 12.8% | 7.375% | 71% | 82% | 17,612 | $7.6B |
| Ohio | 88 bps | 17.9% | 9.4% | 7.5% | 75% | 76% | 19,768 | $3.3B |
| Oklahoma | 88 bps | 9.5% | 15.5% | 7.375% | 75% | 64% | 9,848 | $1.9B |
| Pennsylvania | 88 bps | 17.1% | 11.5% | 7.375% | 75% | 78% | 22,765 | $4.9B |
| South Dakota | 88 bps | 6.6% | 7.5% | 7.25% | 75% | 65% | 1,060 | $253M |
| Tennessee | 88 bps | 14.7% | 10.6% | 7.25% | 75% | 68% | 14,642 | $4.2B |
| Texas | 88 bps | 18.2% | 10.1% | 7.125% | 75% | 69% | 46,626 | $12.4B |
| Virginia | 88 bps | 17.2% | 7.7% | 7.25% | 74% | 70% | 12,284 | $3.6B |
| District of Columbia | 87 bps | 31.7% | 11.8% | 7.249% | 70% | 75% | 936 | $572M |
| Arkansas | 86 bps | 8.3% | 14.5% | 7.35% | 75% | 65% | 7,583 | $1.5B |
| Delaware | 76 bps | 15.8% | 8.1% | 7.25% | 75% | 75% | 1,706 | $454M |
| New Mexico | 76 bps | 21.2% | 6.4% | 7.25% | 74% | 66% | 1,956 | $504M |
| West Virginia | 76 bps | 14.9% | 8.2% | 7.25% | 75% | 57% | 1,850 | $328M |
| Arizona | 75 bps | 18.4% | 7.8% | 7.125% | 70% | 68% | 11,106 | $4.3B |
| California | 75 bps | 18.4% | 11.8% | 7.125% | 68% | 72% | 53,082 | $36.1B |
| Colorado | 75 bps | 18.6% | 6.7% | 7.125% | 70% | 69% | 8,487 | $3.8B |
| Indiana | 75 bps | 17.1% | 7.3% | 7.374% | 75% | 71% | 9,999 | $2.7B |
| Kentucky | 75 bps | 10.7% | 9.4% | 7.25% | 75% | 62% | 7,129 | $1.4B |
| Maine | 75 bps | 21.0% | 6.5% | 7.371% | 75% | 71% | 1,630 | $537M |
| Nevada | 75 bps | 17.4% | 9.8% | 7.125% | 70% | 74% | 5,483 | $1.9B |
| New York | 75 bps | 20.4% | 12.6% | 7.25% | 70% | 86% | 21,609 | $11.4B |
| North Carolina | 75 bps | 16.8% | 9.2% | 7% | 75% | 71% | 20,219 | $5.7B |
| Wyoming | 75 bps | 12.1% | 7.1% | 7% | 73% | 59% | 739 | $283M |
| Illinois | 72 bps | 16.8% | 9.6% | 7.35% | 75% | 69% | 18,177 | $5.4B |
| Iowa | 63 bps | 6.9% | 9.1% | 7% | 75% | 48% | 5,392 | $861M |
| Minnesota | 63 bps | 11.0% | 6.0% | 7.125% | 75% | 52% | 5,741 | $1.5B |
| Nebraska | 63 bps | 8.6% | 10.1% | 7.125% | 74% | 55% | 3,613 | $716M |
| New Hampshire | 63 bps | 18.7% | 5.6% | 7.25% | 75% | 70% | 1,465 | $548M |
| Oregon | 63 bps | 16.4% | 7.4% | 7.125% | 70% | 72% | 4,681 | $1.7B |
| Rhode Island | 63 bps | 18.7% | 8.0% | 7.25% | 70% | 78% | 1,538 | $682M |
| Washington | 63 bps | 18.9% | 7.0% | 7% | 70% | 74% | 9,241 | $4.4B |
| Wisconsin | 63 bps | 12.7% | 7.5% | 7.125% | 75% | 68% | 8,498 | $1.9B |
| Idaho | 62 bps | 16.5% | 7.0% | 6.99% | 70% | 55% | 3,050 | $1.0B |
| Montana | 60 bps | 13.1% | 8.1% | 7% | 70% | 70% | 1,445 | $624M |
| Massachusetts | 55 bps | 16.8% | 9.2% | 7.05% | 70% | 75% | 9,554 | $5.8B |
| North Dakota | 53 bps | 5.1% | 8.6% | 6.875% | 75% | 62% | 943 | $189M |
| Utah | 50 bps | 18.7% | 6.6% | 6.99% | 70% | 71% | 4,868 | $2.1B |
| Vermont | 40 bps | 14.4% | 7.2% | 6.9% | 75% | 71% | 676 | $232M |
How we built this
Derived from CFPB / FFIEC HMDA combined Modified LAR (loan-level public dataset, early release). Universe: single-family 1-4 unit, site-built; home purchase + refinance + cash-out; originated & denied. HMDA captures financed loans only, so all-cash investor purchases are not included.
Full methodology & sources →Cite this report
Free to cite and link with attribution. The underlying state data is downloadable above.
ProInvestorHub, “The 2025 Investor Financing Report,” https://proinvestorhub.com/reports/investor-financing
Frequently asked questions
How much more do real estate investors pay for a mortgage?
In 2025, the median interest rate on an investment-property loan was 7.25% versus 6.49% for an owner-occupant — a premium of 76 bps. The gap is widest in Alaska (113 bps) and narrowest in Vermont (40 bps).
How often are investor mortgage applications denied?
Nationally, 17.5% of investment-property loan applications were denied in 2025, compared with a much lower rate for primary residences. Denials are highest in District of Columbia (31.7%).
What share of investor loans are DSCR or business-purpose loans?
About 72% of investment-property loans were flagged as primarily business or commercial purpose — the category that includes DSCR and LLC-held investor loans. That share exceeds 86% in New York.
What data is this report based on?
Home Mortgage Disclosure Act (HMDA) loan-level data published by the CFPB, covering 2025. The universe is single-family 1-4 unit, site-built home-purchase, refinance, and cash-out loans. It reflects financed purchases only — all-cash investor purchases are not captured.