Picking a loan is not just about finding the lowest rate. The wrong loan type can leave you without renovation money, short on time to finish a project, or stuck with a payment structure that does not match how you plan to make money on the property. Understanding the real estate investor loan types available is the first step to avoiding those problems.
This guide walks through the main real estate investor loan types, what each one is built for, and how to match the loan to your strategy. We use our own program terms as concrete examples so you can see how the numbers work in practice.
Start With Your Exit Strategy
Before you compare loans, answer one question: how will this loan be paid off? Nearly every investor loan falls into one of two groups.
- Short-term loans (fix and flip, bridge, construction) are repaid when you sell or refinance, usually within 12 to 24 months.
- Long-term loans (DSCR rental and rental portfolio loans) are repaid over time from rental income.
Your exit determines which group you are in. From there, the property’s condition and your plans for it narrow the choice.
Fix and Flip Loans: Buy, Renovate, Then Sell or Rent
A fix and flip loan funds the purchase of a property that needs work and the renovation itself, all in one short-term loan. It is designed for investors who will add value through a rehab, then sell or refinance.
Key terms of our fix and flip program:
- Rates starting at 8.25%
- Term: 12 months standard, 18-month option considered case by case
- Up to 90% of the purchase price (loan-to-cost)
- Up to 100% of the rehab budget
- Total loan up to 75% of the after-repair value (ARV)
- Loan amounts from $50K to $3M
- Eligible properties: attached or detached single-family homes, 2–4 units, townhomes, and warrantable condos
- Minimum FICO: 660 (below 660 is subject to lender approval)
- No minimum experience required; entity borrower required; full recourse
Best for: distressed or dated properties where your profit comes from the renovation.
Bridge Loans: Short-Term Financing Without a Rehab
A bridge loan is short-term financing for a property that is already in good condition or close to it. Investors use bridge loans to close quickly, hold a property while lining up long-term financing, or pull capital out of a recently purchased property.
We offer two bridge options:
- No DSCR option: rates starting at 8.25%, up to 85% of the purchase price plus verified completed capital improvements if owned under six months, maximum 70% LTV, 660 minimum FICO (below 660 is subject to lender approval), 12-month term, property condition C2 or better.
- DSCR exit option: the same leverage limits, with a minimum 1.10 DSCR based on the lower of in-place or market rent, and property condition C4 or better with no deferred maintenance.
Best for: properties that do not need a renovation budget. Not sure whether your deal is a flip or a bridge? Read our comparison: fix and flip loan vs. bridge loan.
See What Your Deal Qualifies For
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Ground-Up Construction Loans: Building New
A construction loan funds new construction, typically the land or lot plus the cost to build, with construction money released in draws as work is completed.
Our ground-up program includes:
- Rates starting at 8.99%
- Up to 75% of the lower of land value or purchase price (60% if unpermitted), plus 100% of construction costs, capped at 85% of total project costs
- An LTC catch-up draw available once permits and plans are approved after closing
- Up to 70% of ARV
- Minimum one-month interest reserve
- Term: 12 months, up to 18 months at lender discretion
- Requires one to two completed ground-up projects
Builders with three or more similar completed projects may qualify for our Experienced Developer Program: up to 90% of total project costs with a financed interest reserve, 12- to 24-month terms, and up to 10 properties.
Best for: builders with a track record, permitted or nearly permitted plans, and a 1–4 unit residential project. Mixed-use, 5+ unit multifamily, commercial, rural, and vacation-rental projects are not eligible.
Rental (DSCR) Loans: Long-Term Financing for Rentals
A DSCR loan qualifies based on the property’s rental income compared with its debt payments, not your personal income. It is a long-term loan for investors who plan to hold.
- Rates starting at 5.39%
- 30-year term, fixed or adjustable rate, fully amortizing or partial interest-only
- Purchase, rate-and-term refinance, or cash-out
- Up to 80% LTV on purchases and rate-and-term refinances, 75% on cash-out
- 660 minimum FICO; minimum DSCR of 1.05x
- No personal income verification; purchases may be vacant
Best for: stabilized rentals and investors refinancing out of a short-term loan. Our full guide covers how DSCR loans work, including how to calculate the ratio.
Rental Portfolio Loans: One Loan, Multiple Rentals
If you own several rentals, a portfolio (blanket) loan can finance them together for a purchase, rate-and-term refinance, or cash-out. Our portfolio program requires a 680 minimum FICO, a 1.05x minimum DSCR, at least 90% occupancy by unit count, and a $72K minimum property value, with loans up to $2M.
Real Estate Investor Loan Types at a Glance
| Loan type | Starting rate | Typical term | Funds renovation? | Best fit |
|---|---|---|---|---|
| Fix and flip | 8.25% | 12 months (18 case by case) | Yes, up to 100% of rehab | Value-add rehabs |
| Bridge | 8.25% | 12 months | No | Good-condition properties, quick closes |
| Ground-up construction | 8.99% | 12 months (up to 18; 12–24 for experienced builders) | Yes, via draws | New builds |
| Rental (DSCR) | 5.39% | 30 years | No | Long-term holds |
| Rental portfolio | 5.39% | Long-term hold | No | Multiple rentals |
How to Choose: Four Questions
- Does the property need work? If yes, you need a loan that funds the rehab (fix and flip or construction). If no, consider bridge or DSCR.
- Will you sell or hold? Selling points to a short-term loan. Holding points to DSCR, either now or as your exit from a short-term loan.
- How much time do you really need? Build in a buffer. Permits, contractors, and inspections rarely run exactly on schedule.
- What is your track record? Fix and flip has no experience minimum with us; ground-up construction does.
Many investors use two loans on the same property: a fix and flip loan to buy and renovate, then a DSCR loan to refinance and hold. Planning both from the start makes the transition smoother. You can see every current term on our loan programs page.
Frequently Asked Questions
What is the easiest investor loan to qualify for as a beginner?
For a first renovation project, a fix and flip loan is often the most accessible. Our fix and flip program has no minimum experience requirement, though approval still depends on the deal, your credit, and underwriting.
Can I use a fix and flip loan and then refinance into a rental loan?
Yes, that is a common strategy. You renovate with a short-term fix and flip loan, place a tenant, and refinance into a long-term DSCR loan based on the property’s rental income.
Do your loans cover owner-occupied homes?
No. All of our programs are for non-owner-occupied investment properties.
Which loan has the lowest rate?
Long-term rental (DSCR) loans have the lowest starting rate in our lineup, starting at 5.39%. Short-term loans cost more because they fund properties in transition and often include renovation money.
Ready to Run the Numbers on Your Next Deal?
Pre-qualify for a fix and flip, bridge, construction, or rental loan. It takes a few minutes, there is no impact to your credit, and you will work directly with the lender from start to finish.
No Impact to Credit · No obligation
This article is for general informational purposes only and is not an offer or commitment to lend. All loans are subject to underwriting and approval, and terms are subject to change.