Loan program

Investment Property Loans in NC, SC & GA

Financing a rental works differently than buying your own home, and that difference can work in your favor. Some programs qualify on the property's income, not your W-2. Whether you are buying your first long-term rental or adding to a portfolio, here is how the main options compare and what lenders expect.

How it works

How it works.

There are a few paths. Conventional investment loans qualify you personally, like a regular mortgage, and usually want a larger down payment and several months of reserves. DSCR loans (debt service coverage ratio) qualify mainly on whether the property's rent covers the payment, so they do not rely on your personal income, which is popular with investors scaling a portfolio. For short-term projects, bridge and fix-and-flip financing fund the purchase and rehab. We match the loan to the deal and your strategy.

How DSCR is calculated

DSCR equals the property's monthly rent divided by its monthly housing payment (principal, interest, taxes, insurance, and HOA). A ratio of 1.0 means rent exactly covers the payment. Many lenders want 1.0 or higher for their best terms, and some allow lower ratios with larger down payments or higher pricing. Rent is usually based on an appraiser's rent schedule or an existing lease.

Because DSCR loans do not use your tax returns, they can be closed faster for investors with complex income, and many DSCR lenders allow closing in an LLC. Rates and fees are typically higher than conventional investment loans.

How conventional loans count rental income

On a conventional investment loan, lenders generally count 75% of the gross rent (from a lease or the appraiser's market rent estimate) to account for vacancy and maintenance. If you already own rentals, they look at Schedule E on your tax returns. Fannie Mae and Freddie Mac limit how many financed properties you can have, and reserve requirements rise as your portfolio grows.

Short-term rentals

Some DSCR lenders will use short-term rental income based on market data or booking history. Before you buy, check local rules. Several cities in our area, including Charleston, Savannah, and Asheville, regulate short-term rentals through permits, zoning, or owner-occupancy rules, and HOAs can have their own restrictions. Confirm with the city and an attorney before counting on nightly income.

Step by step

How the process works, start to finish.

1. 1

   Define the strategy

   Long-term rental, short-term rental, or rehab and refinance. The strategy decides the loan.

2. 2

   Run the deal numbers

   We estimate rent, taxes, insurance, and payment to see the DSCR and cash flow before you offer.

3. 3

   Choose conventional vs. DSCR

   I compare pricing, down payment, and documentation for both paths.

4. 4

   Appraisal with rent schedule

   The appraiser estimates value and market rent, which drives DSCR and conventional rental income.

5. 5

   Underwriting and closing

   The file is underwritten and closed with a local closing attorney, in your name or an LLC if the program allows.

FAQ

Common questions: Investment Property.

• What is a DSCR loan?

  A loan that qualifies mainly on the property's rental income compared with its payment, not your personal tax returns. It is popular for building a rental portfolio.

• How much down do I need for a rental property?

  More than a primary residence. Conventional loans generally require 15% down for a single-unit investment property and 25% for two to four units. DSCR loans often need 20% to 25%, depending on the lender.

• What DSCR do lenders require?

  Many lenders want a ratio of 1.0 or higher, meaning rent covers the full payment, for their best terms. Some allow lower ratios with more down or higher pricing.

• Can I buy a rental property in an LLC?

  Many DSCR lenders allow closing in an LLC. Conventional loans generally close in your personal name. Talk to an attorney about liability and a tax pro about the tax side.

• Can I use rental income to qualify?

  Yes. Conventional lenders typically count 75% of gross rent from a lease or appraiser estimate. DSCR loans use rent as the main qualifying factor.

• Can I get a loan for an Airbnb or short-term rental?

  Some DSCR lenders allow short-term rental income. Check local rules first, since several cities in our area, including Charleston, Savannah, and Asheville, regulate short-term rentals.

• How many investment properties can I finance?

  Conventional guidelines cap the number of financed properties, with rising reserve requirements as you add more. DSCR and portfolio lenders can go beyond those limits.

• Can I buy a duplex and live in one side?

  Yes, and that is often cheaper than an investment loan. FHA, VA, and conventional allow two to four unit homes as a primary residence if you live in one unit, with lower down payments.

Sources: Fannie Mae Selling Guide (investment property, rental income, multiple financed properties); lender DSCR program guidelines; SC Code Section 12-43-220 (assessment ratios).

Last reviewed September 2026 by Keith Lopez, NMLS #2814077.

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