Investment Property Loans | Non-QM, DSCR, No-Doc Mortgages

What are Investment Property Loans?

Investing in real estate can be a great way to build your wealth over time. But just so you know, getting financing for an investment property isn’t the same as snagging a mortgage for the home you live in. Some investors qualify using traditional conventional loans that follow Fannie Mae and Freddie Mac guidelines. Others need non-QM investment property loans with more flexible underwriting, such as DSCR loans (based on the property’s cash flow), bank statement loans, or alternative documentation programs.

In this guide, we’ll break down the most common investment property loan options, the typical eligibility requirements lenders look for, and how to choose the right loan based on your strategy—whether you’re buying your first rental, scaling a portfolio, or refinancing to pull cash out.

What You’ll Learn in This Article

• The difference between traditional (agency) investment property loans and non-QM/portfolio investor loans
• The most common investor mortgage options, including DSCR, Non-QM, and alt-doc/no-doc-style programs
• Typical lender requirements for investment properties (credit score ranges, down payment/LTV, reserves, and property types)
• How rental income is evaluated (market rent, lease rent, short-term rental methods, and DSCR basics)
• When a borrower’s personal income and DTI matter—and when the property cash flow matters more
• How investors can finance properties in an LLC (and what lenders usually require)
• A simple way to pick the best loan for your plan: buy-and-hold, short-term rental, BRRRR, or portfolio growth

What Is an Investment Property Loan—and How Does It Work?

Investment property loans can be underwritten in two main ways. Traditional conventional investment loans still look closely at your personal income, debt-to-income ratio (DTI), credit, and reserves, just like an owner-occupied mortgage. But DSCR investor loans are different: they focus more on the property’s rental cash flow—specifically, whether the expected rent can cover the monthly housing payment. The right loan depends on whether you qualify best based on your personal income or the property’s income.

When Traditional Underwriting Falls Short

Homeowners share mortgage underwriting stories that often leave the real estate investors scratching their heads. Taxes, low personal income, an incomplete asset statement, or even unexplained gaps in employment. If your deal looks rules-adverse, traditional banks often flat-out decline your mortgage and suggest you need a stronger paycheck. That’s an easy “no” to stomach when buying your first single-family investment. However, it becomes a loud “shut-out” when you’re assembling a portfolio.  

What Loan Options Work When Conventional Financing Doesn’t Fit?

When a conventional investment loan isn’t the best fit—often due to how income is documented, portfolio size, or timing—many investors explore non-QM and portfolio loan programs. These options don’t mean “no rules.” They use different underwriting methods, such as rental cash flow, bank deposits, or asset-based qualification, depending on the program and lender.

1. Non-QM loans: Flexible guidelines for borrowers whose income is harder to document with standard tax returns (common for self-employed, multiple income streams, or recent changes). Qualification can use bank statements, P&L statements, assets, or other methods, depending on the lender.
2. DSCR loans: Qualification is based primarily on whether the property’s rental income supports the housing payment (rent-to-payment / DSCR), instead of using personal DTI as the main factor.
3. Alternative Documentation (“low-doc”) options: Reduced income documentation compared to conventional loans. Requirements vary, but lenders still review core risk factors like credit, down payment, reserves, and the property.

Key Features of Investment Property Loans

• You can borrow a larger sum than with a primary home mortgage.
• Loans work for single-family homes, condos, 2–4 unit properties, and larger multifamily buildings.
• Lenders offer options for quick flips or properties meant for years of holding.
• Underwriting terms can shift with each program, so compare your choices.

Non-QM Loans for Real Estate Investors

What Are Non-QM Investment Loans?

Non-QM stands for Non-Qualified Mortgage, a product for borrowers who don’t meet strict agency guidelines. Self-employed buyers, multiple income streams, or recent financial changes can find a fit here.

Benefits of Non-QM Loans

• Provide income with recent bank statements or a record of cash flow.
• Debt ratios can stretch beyond the 43% ceiling in typical deals.
• Recent credit hiccups, like a quick foreclosure, may still qualify.
• Buy a property under your LLC or corporation’s name immediately.

DSCR Loans: Debt Service Coverage Ratio Explained

How DSCR Loans Work

A DSCR loan uses the rental income from your new or existing property in place of your personal earnings. Lenders calculate the rent ratio to the monthly mortgage, taxes, and insurance to see if the rent covers those costs.

Why Investors Prefer DSCR Loans

• No tax returns or W-2s needed.
• Approval is based solely on the rental cash flow.
• Great for rapidly growing a rental portfolio.
• Suitable for long-term rentals and short-term rentals like Airbnb.

What Is a No-Doc Mortgage?

A no-doc mortgage let you skip submitting the usual income documents. Instead, the lender looks at your credit score, down payment, and reserves.

Benefits of No-Doc Loans

• Less paperwork and quicker closings.
• Ideal for self-employed borrowers or those with significant wealth.
• Can be used for buying, refinancing, or cashing out equity.

Selecting the Best Loan for Your Investment

Pick the Property Loan That Matches Your Strategy

• Non-QM is great for income that’s harder to fit on a tax return.
• DSCR is the way to go if the property’s rent gets you approved.
• No-doc is the right choice if you want a smooth and speedy process with less documentation.

Since every property portfolio differs, partner with a mortgage team specializing in these programs.

Why Work With Gustan Cho Associates?  

At Gustan Cho Associates, we’re a nationwide mortgage broker licensed in 48 states, giving you access to 280 wholesale lenders. With us, you’ll find every major investment loan program.

Here’s What Sets Us Apart:

• Zero overlays on FHA, VA, USDA, and Conventional loans.
• Unique Non-QM, DSCR, and No-Doc loan programs.
• Proven experience closing complicated investor scenarios that banks usually deny.
• Clear and fast loan processes with solutions that focus on you, the investor.  

Buying your first rental or adding dozens? We’ll get you financing that turns real estate into real wealth.  

No-Doc Investment Property Loans

One of the great benefits of non-prime portfolio loans is the guidelines are not set in stone. Portfolio lenders can and often make exemptions on investment property loans. There are no set mortgage guidelines for investment property loans.

Investment Property Loans made simple. Learn about Non-QM, DSCR, and No-Doc mortgages with flexible guidelines from Gustan Cho Associates.

Investment property loans are portfolio loans. Gustan Cho Associates has launched dozens of non-QM loan programs for investment properties.

Top Non-QM Lenders For Investment Property Loans

Gustan Cho Associates has over 280 wholesale mortgage lenders for investment property loans. Gustan Cho NMLS 873293 has decades of experience in owning, managing, operating, and financing investment property loans. There are two categories of investment property loans: Full-doc and no-doc non-QM loans.

Investment property loans are tailored to different investor needs and circumstances. Full doc loans are mortgage loans that need full income documentation. No-doc loans do not require tax returns and underwriters use alternative methods to determine income.

Non-QM mortgages benefit full-time real estate investors without a steady stream of income, full-time fix and flip investors, self-employed wage earners who show little to no adjusted gross income, and borrowers who cannot source their income. In the following paragraphs, we will cover a breakdown of some common types of investment property loans.

Non-QM (Non-Qualified Mortgage) Investment Property Loans

Non-QM loans don’t meet the Consumer Financial Protection Bureau’s criteria for “qualified mortgages.” They might be suitable for investors who need to meet traditional lending requirements, such as self-employed individuals with fluctuating incomes or those with non-traditional assets.

DSCR (Debt-Service Coverage Ratio) Investment Property Loans

DSCR loans assess the property’s income-generating potential rather than the borrower’s income. Lenders typically look for a DSCR of 1.2 or higher, meaning the property’s income should be at least 120% of its mortgage payments. These loans are often used for commercial properties or multi-unit residential properties.

DSCR investor loans is not based on the individual debt-to-income ratio. Unlike Fannie Mae’s 5 to 10 Financed Properties Guidelines, there is no limit on the number of properties financed with Investment Property Loans.

Again, unlike traditional Investment Conventional Loans, Rental Property Financing and Investment Property Loans can be financed directly by an LLC. It is not only restricted to individual borrowers and co-borrowers. There are down payment and loan-to-value requirements on investment property loans. The down payment and LTV requirements are based on the borrower’s credit scores.

How Much Down Do You Need for a DSCR Loan?

When it comes to DSCR loans, down payment and loan-to-value (LTV) requirements can vary by lender. They take into account a bunch of factors, not just your credit score. Lenders often price DSCR loans using a combination of credit score, property type, DSCR/cash flow, reserves, loan size, occupancy/lease type (long-term vs short-term rental), and whether there’s a prepayment penalty.

As a general guide, many DSCR lenders fall into these common ranges:

• Strong borrower + strong property cash flow: often 20%–25% down (about 75%–80% LTV)
• Average credit or tighter DSCR/cash flow: often 25%–30% down (about 70%–75% LTV)
• Weaker profiles (lower scores, unique property types, low DSCR, limited reserves): may require 30%+ down (often ≤70% LTV)

Important: A 700+ credit score does not automatically guarantee 80% LTV. Some lenders cap LTV at 75% unless the DSCR is strong, the property and lease terms meet their guidelines, or the property has strong reserves. That’s why one investor may quote 25% down, even with excellent credit.

What Credit Score Do You Need for a DSCR or Non-QM Investment Loan?

Minimum credit score requirements for DSCR and other non-QM investment property loans vary by lender and loan program. Some lenders may consider scores in the mid-600s, while others require higher scores depending on the down payment/LTV, property type, reserves, DSCR/cash flow, and loan size.

If your score is below a lender’s target range, it doesn’t always mean you’re out of options. In many cases, investors can still qualify by adjusting the structure—such as increasing the down payment, strengthening reserves, or improving the property’s cash-flow profile.

Do I Need Credit Repair?

Not necessarily. We can review your credit report and show you the fastest, legitimate ways to improve your mortgage readiness (for example: correcting errors, optimizing utilization, and paying down revolving balances). You’re never required to use a credit repair company to work with us.

Non-QM DSCR Rental Property Mortgage Loans

There is no limit on the number of rental properties the investor has on their portfolio. Down payment requirements are 20% to 30% depending on the borrower’s credit scores. The only thing that we go by is the property itself. Property needs to cash flow. John Strange, a senior mortgage loan originator at Gustan Cho Associates says the following about investment property loans at Gustan Cho Associates:

We frequently work with borrowers who have complex income, multiple properties, or non-traditional documentation. Instead of forcing every borrower into one box, we evaluate the whole scenario—property cash flow, reserves, credit profile, and exit strategy—to identify the most realistic path to approval.

Investment property loans are available nationwide, and program availability can vary by state and lender. If you’re looking to buy or refinance an investment property, we’ll help you find the best options that fit your property type, strategy, and location.

No-Doc Mortgages (No Documentation Mortgages)

No-doc mortgage loans don’t require extensive documentation of the borrower’s income, assets, or employment history. They can appeal to investors who need help providing traditional documentation but may come with higher interest rates or stricter terms. When considering non-qm and no-documentation types of loans, investors should carefully weigh the benefits and risks.

Benefits of Investment Property Loans

Flexibility: Non-QM and no-doc mortgages offer flexibility for borrowers who don’t meet traditional lending criteria. Income-based assessment: DSCR loans focus on property income rather than borrower income, which can benefit investors with multiple properties. Speed: No-doc mortgages often have quicker approval processes since they require less documentation.

Risks of Investment Property Loans

Higher interest rates: Non-traditional loans typically have higher interest rates to compensate for increased risk. Stricter terms: To mitigate risk, lenders may impose stricter terms, such as higher down payments or shorter loan terms. Michael Gracz, a senior mortgage loan officer at Gustan Cho Associates says the following about the risks of investment property loans:

Potential for over-leverage: With stringent income verification, borrowers could over-leverage themselves, leading to financial difficulties if properties perform as expected.

It’s essential for investors to thoroughly research and understand the terms and conditions of any loan before committing, as well as to consider seeking advice from financial professionals specializing in real estate investments. Additionally, investors should ensure they have a solid understanding of the property’s income potential and market dynamics to mitigate risks associated with investment property loans.

Mortgage Options on Non-QM Investment Property Loans

Gustan Cho Associates has dozens of non-QM wholesale lending partners that offer owner-occupant, second homes, and investment property loans. Many investment home financing do not require income tax returns and offer alternative income such bank statement deposits, P and L, and debt-service coverage ratio. Dale Elenteny, a senior mortgage loan originator at Gustan Cho Associates says the following about unique investment property loans at Gustan Cho Associates:

The team at GCA Mortgage Group separates itself from the competition because we offer investment property loans that others do not offer such as second mortgages, HELOCs, and time close new construction investment property loans.

We even have asset depletion, bank statement mortgages, and investor cash-flow loan programs on investment properties. Investment properties can close under a Limited Liability Corporation (LLC). In this article, we will discuss and cover financing investment property loans.

Updated Non-QM Investment Property Loans

Gustan Cho Associates has new Rental Property Financing and Investment Property Loans that have not been in the marketplace since the Real Estate and Market Collapse of 2008. Rental property investors can now qualify for rental property financing and no doc investment property loans. Borrower’s debt to income ratios does not matter.

Types of Investment Property Loans

Individual or Single Property Loans: This loan program is based on 30-year fixed rate fully amortized mortgages. Portfolio Investment Loans are portfolio property loan programs for investors who have at least 7 plus income-producing rental units. Able to purchase multiple properties or refinance or get a line of credit or the combination of purchase/refinance/line of credit based on the equity of their investment property portfolio.

Benefits of Non-QM Investment Property Loans

There are many reasons why the Investment Property Loan Program is different than any other commercial/investor mortgage program. This is a no-doc program where income verification is not required. It is solely underwritten based on the cash flow of the subject property. This unique program is underwritten based on the debt coverage ratio.

Single Investment Property Loans With No Income Documentation

The single investment property loan program is for both purchases and refinances. Here are the types of properties that can be financed:

• Single Family Homes
• Condominiums: Non-Warrantable Condominiums are allowed
• Townhomes
• Two to Four unit apartment buildings

The minimum property value needs to be $100,000 and the minimum loan amount is $75,000.

Property Debt-to-Income Ratio Requirements

This program is underwritten by the cash flow of the property and not the borrower and co-borrowers. Here is the formula of the property debt to income ratio requirements: For properties where their value is $150,000 or greater, the maximum cash flow coverage requirement is 85%. For properties where their value is less than $150,000, the maximum cash flow coverage requirement is 70%. The Cash-Flow Coverage is calculated by taking the PITIA and dividing it by the Gross Rent.

What Is a Portfolio Line of Credit for Real Estate Investors?

Portfolio Lines of Credit (Blanket LOC) for 7+ Rental Units

A portfolio line of credit (sometimes called a blanket line of credit) is a niche financing option designed for experienced investors with multiple rental units. Instead of financing one property at a time, this program can use the combined equity across several properties to create a revolving line of credit. It’s often used to move quickly on new purchases, fund renovations, or access capital without refinancing every property individually.

Who This is Best for:

• Investors with 7+ rent-producing units (units can be spread across multiple properties)
• Borrowers who have meaningful equity and want flexible access to funds
• Portfolio owners who prefer one credit facility instead of multiple separate loans

Who This is Not Ideal for:

• First-time investors buying a single rental
• Borrowers looking for a smaller loan amount or a simple one-property mortgage
• Investors without sufficient equity or stable rental occupancy

Standard Baseline Requirements (varies by lender):

• Minimum total loan/credit line amount: often around $700,000 (some lenders may be higher or lower)
• Properties may be held in an LLC, depending on the lender
• Lenders typically review occupancy, property condition, and portfolio cash flow
• Maximum leverage is often capped (for example, ~75% LTV) based on the overall portfolio

What Counts as “7 Units”?

Units don’t have to be 7 separate houses. For example:

• 7 single-family rentals, or
• 4 duplexes (8 units), or
• 2 four-unit properties (8 units)

Bottom line: If you own a portfolio and want flexible capital for growth, a blanket LOC can be powerful. If you’re buying one rental, you’ll usually be better served with a DSCR loan, a Non-QM loan, or a traditional investment property mortgage.

No-Doc Loans For Rental Properties

The above examples show at least 7 or more rent-producing units. This program allows investors a blanket line of credit that they can use anytime for any purpose they need. It can be used to purchase an investment property or to do rehab on their rental properties or for any personal reasons. There is no other investment loan program like this today. Investors do need at least 7 rental-producing properties with equity in order to qualify. Portfolio loans and lines of credit are for purchase and refinances or a combination of both. Investment homes do not have to be in the same state and can be located in multiple states.

What Is a Good DSCR Loan For Rental Properties?

The following are the types of investment properties that are eligible for the portfolio loan and blanket line of credit program:

• Single-family homes
• Townhomes
• Condominiums
• Non-Warrantable Condominiums are allowed
• Two to four-unit buildings
• 5 to 20-unit apartment buildings
• The minimum per unit property value is $50,000 and the minimum portfolio loan and/or line of credit amount is $700,000
• The maximum Loan To Value is 75% LTV
• The minimum DSCR is 1.15x which is calculated by taking the NOI divided by the PI
• At least 90% of the units need to be occupied and rented
• The borrower needs to be under the name of an LLC of the borrower
• Although the borrower’s personal debt to income ratio is not required, the minimum credit score of the borrower needs to be at least 660 FICO.
• Down Payment Requirements for purchase or loan to value for refinances depend on the borrower’s credit scores

Borrowers need at least 660 for 70% LTV, 680 for 75% LTV, and at least 700 for 80% LTV.

What Kind of Loan Do You Get For an Investment Property?

Investors who are ready to get into the real estate market, whether new or seasoned, can now qualify for this special investment property mortgage program. To learn more about it, contact Gustan Cho Associates at 800-900-8569 or text for a faster response. Or email us at alex@gustancho.com.

The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays to take your mortgage inquiry.

Gustan Cho Associates is a mortgage company licensed in multiple states with no lender overlays on government and conventional loans. We also have a lending network of 280 wholesale investors and financial institutions. We also are experts in non-QM and alternative financing loan programs. The team at Gustan Cho Associates is available seven days a week, evenings, weekends, and holidays.

Frequently Asked Questions About Investment Property Loans:

What is a DSCR Loan for an Investment Property?

A Debt Service Coverage Ratio (DSCR) loan is a type of mortgage for investors. It mainly focuses on whether the rental income from the property can cover monthly payments, including principal, interest, taxes, insurance, and, sometimes, HOA fees. It’s a favorite among real estate investors because it often means you don’t need to deal with all the typical income paperwork.

How is DSCR Calculated?

DSCR is generally calculated by dividing the property’s income by its debt obligation (lenders may use different versions). A simple way to think of it: DSCR ≈ rental income (or NOI) ÷ monthly housing payment (PITIA). A ratio of 1.00 means the property produces enough income to cover the payment; below 1.00 means it falls short.

How Much Down Payment Do You Need for a DSCR Loan?

Most DSCR programs typically require larger down payments than primary-home loans, and the exact LTV depends on the lender and risk factors (credit score, DSCR strength, property type, reserves, and lease type). Many investors see common ranges around 20%–30% down, but quotes can vary even with strong credit.

What Credit Score Do You Need for DSCR or Non-QM Investment Loans?

Credit score minimums vary by lender, but many DSCR programs often start around the low-to-mid 600s (with better pricing/terms as scores rise). For non-QM loans overall, requirements can be more flexible than conventional, but often come with higher rates and/or larger down payments.

Can I Get a DSCR Loan in an LLC?

Often, yes. Many DSCR lenders allow—or even prefer—investor loans to be closed in an LLC or corporation because these are commonly treated as business-purpose investor loans (exact rules vary by lender and state).

What’s the Difference Between a DSCR Loan and a Conventional Investment Property Loan?

A conventional investment loan typically qualifies you using personal income, DTI, and complete documentation under agency guidelines. A DSCR loan focuses more on the property’s rental income/cash flow to determine eligibility, which can help investors with complex income or growing portfolios.

This article about “Investment Property Loans | Non-QM, DSCR, No-Doc Mortgages” was updated on February 9th, 2026.