The short answer
Real estate investor loans are financing built for non-owner-occupied investment property, and most investors use one of five types: DSCR loans for long-term rentals, fix & flip loans for buy-renovate-sell projects, bridge loans for short-term holds, construction loans for ground-up builds, and conventional or portfolio loans for borrowers who qualify on personal income. The right one depends on your strategy, not on which has the lowest advertised rate. Hold for rent? Start with DSCR. Renovate and sell? Fix & flip. Need to close fast before the property qualifies for long-term debt? Bridge. Building new? Construction.
Key takeaways
- Investment property loans fall into five main types: DSCR, fix & flip, bridge, construction and conventional/portfolio.
- Business-purpose loans (DSCR, fix & flip, bridge, construction) qualify mainly on the property and the deal, not your W-2s.
- Match the loan to the strategy: rentals → DSCR, renovations → fix & flip, short holds → bridge, new builds → construction.
- Many investors use two loans on one property — a short-term loan to buy and fix, then a DSCR refinance to hold.
- Compare total cost over your realistic hold period, not just the rate: points, fees, prepayment terms and extensions all count.
What counts as a real estate investor loan?
A real estate investor loan is any loan used to buy, renovate, build or refinance property you don’t live in. The big dividing line is between consumer loans — conventional mortgages that qualify you on your personal income and debt-to-income ratio — and business-purpose loans, which qualify mainly on the property, the deal and your exit plan.
Business-purpose investment property loans are why investors can scale past a handful of doors, close in an LLC, and buy properties that don’t yet qualify for a traditional mortgage. Here are the five types you’ll run into, and what each one is actually for.
The 5 types of investment property loans
1. DSCR loans — for long-term rentals
A DSCR (debt service coverage ratio) loan qualifies the property on its rental income: rent ÷ monthly payment. No tax returns or W-2s. It’s the workhorse loan for buy-and-hold investors. EHM Strategies’ DSCR program offers up to 80% LTV, a 30-year fixed option, ratios from 0.75, a 660 minimum credit score, 6+ months of reserves, and loan sizes from $100K to $3M+. New to DSCR? Read the complete DSCR guide.
2. Fix & flip loans — for buy, renovate, sell
A fix & flip loan covers the purchase and the renovation in one short-term, interest-only loan. Rehab funds sit in escrow and are released in draws as work is completed and inspected. EHM’s fix & flip program offers up to 90% loan-to-cost, up to 75% of after-repair value (ARV), 12–18 month terms, and closings in as few as 7–14 days. The fix & flip guide walks through the math.
3. Bridge loans — for short-term holds
A bridge loan is short-term, interest-only financing used to buy or hold a property until the next step: a sale, a DSCR refinance, or permanent financing once it’s stabilized. Little or no rehab money. It’s the tool for speed and timing gaps — see when bridge loans make sense.
4. Construction loans — for ground-up builds
A construction loan funds a new build (or a major expansion) in stages tied to construction milestones. Lenders look closely at the plans, budget, timeline, permits and the experience of the builder and borrower. It usually ends in a sale or a refinance into long-term debt once the property is complete.
5. Conventional and portfolio loans — for contrast
A conventional investment-property mortgage (Fannie Mae / Freddie Mac) can carry attractive pricing, but it qualifies you — full income documentation and DTI — generally closes in your personal name, and gets harder as you add properties. Portfolio loans are held by a bank instead of sold, so guidelines vary from bank to bank. Both work well for some investors; they’re just not built to scale a rental business. Compare them in DSCR vs. conventional.
Which investor loan fits your strategy?
| Your strategy | Best-fit loan | Typical term | Qualifies mainly on |
|---|---|---|---|
| Buy and hold a rental | DSCR loan | 30 years | The property’s rental income |
| Buy, renovate and sell | Fix & flip loan | 12–18 months | Purchase price, rehab budget, ARV |
| Buy fast or hold until it qualifies | Bridge loan | Short-term (months) | As-is value and the exit plan |
| Build new | Construction loan | Length of the build | Plans, budget, builder/borrower experience |
| Buy a rental with strong personal income | Conventional / portfolio | Up to 30 years | Your income, DTI and credit |
| BRRRR (buy, rehab, rent, refinance) | Fix & flip or bridge → DSCR | Short-term, then 30 years | The deal first, then the rent |
What investor lenders look at
Business-purpose loans skip the tax returns, but they’re still underwritten. Expect every lender to review some version of the following:
- Credit: guarantors’ credit is pulled. EHM’s DSCR and fix & flip programs both start at a 660 score.
- The property: appraisal, condition, rents (for DSCR) or after-repair value (for fix & flip).
- Liquidity: cash to close plus reserves — 6+ months for EHM’s DSCR program.
- Experience: especially for heavy rehab and construction. First-time investors can qualify, but terms may differ.
- Entity documents: if you’re closing in an LLC — see how to get a mortgage in an LLC.
- Exit plan: for any short-term loan, how and when it gets paid off.
How to choose: five questions to answer first
- 1How long will you own it? Months points to fix & flip or bridge; years points to DSCR or conventional.
- 2Does it need work? Real renovation needs a loan with a rehab budget and draws, not a bridge with no construction funds.
- 3Does it qualify for long-term debt today? If it’s vacant or under-rented, a short-term loan may be the bridge to a DSCR refinance.
- 4How do you want to document income? If your tax returns understate your real cash flow, business-purpose loans avoid that problem.
- 5What’s the total cost over your hold? Add points, interest for a realistic timeline, fees and any prepayment or extension costs. The refinance comparison tool and fix & flip analyzer help you run the numbers.
Where a broker fits
EHM Strategies is a mortgage broker, not a direct lender. We work with a network of lending partners, which means we can match the loan type — and the lender — to the deal instead of fitting every deal into one product. Every scenario is reviewed by a real person, and all loans are subject to credit approval and program guidelines. Get a quick read on fit with Noble’s Loan Strategy analysis, browse all loan programs, or request a quote.
Frequently asked questions
What are the main types of real estate investor loans?
The five main types are DSCR loans for long-term rentals, fix and flip loans for renovation projects, bridge loans for short-term holds, construction loans for ground-up builds, and conventional or portfolio loans for investors who qualify on personal income.
What is the best loan for an investment property?
It depends on the strategy. A DSCR loan usually fits a long-term rental, a fix and flip loan fits a buy-renovate-sell project, a bridge loan fits a short hold or fast close, and a construction loan fits a new build. Many investors combine a short-term loan with a later DSCR refinance.
Can I get an investment property loan without tax returns?
Yes. Business-purpose loans such as DSCR, fix and flip, bridge and construction loans qualify mainly on the property and the deal rather than personal tax returns. Credit, liquidity and the property itself are still reviewed.
What credit score do I need for a real estate investor loan?
Requirements vary by lender and loan type. EHM Strategies’ DSCR and fix and flip programs both require a minimum 660 credit score, and higher scores generally improve pricing and leverage.
Can first-time investors get investor loans?
Often, yes. DSCR loans generally qualify on the property’s rental income, and many fix and flip lenders work with first-time investors, though leverage or terms may differ from those offered to experienced investors.
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This article is for general educational purposes and is not a commitment to lend, legal advice or tax advice. Loan programs, terms and eligibility vary by lender and are subject to credit approval and program guidelines. Not all programs are available in all states. See our disclosures.