Start with what you are doing with the property
The right financing depends on the plan: flipping the property, renting it, building on it, or holding it for a few months while you arrange something else. Each strategy has a loan designed around its exit, and using the wrong one costs you in rate, in leverage, or in a deal you could not close in time.
| Your strategy | The loan built for it | How it gets repaid |
|---|---|---|
| Buy, renovate, sell | Fix and flip | Sale of the finished property |
| Buy, renovate, keep | Fix and flip or rehab now, DSCR later | Refinance into a 30-year rental loan |
| Close fast, sort it out later | Bridge | Sale or refinance |
| Buy a rent-ready rental | DSCR or conventional | Monthly payments over 30 years |
| Build from the ground up | Construction | Sale or refinance on completion |
Fix and flip loans
For buying a distressed property, renovating it and selling it at a profit. One loan covers the purchase and the renovation, and the renovation money is released in draws as work is completed and inspected. Market pricing for short-term loans commonly runs about 8% to 15% interest plus 1 to 4 points.
Through our lending partners, standard fix and flip pricing is 12.99% plus 2.99 points, from $50,000, with a 600 minimum credit score. Leverage runs up to 100% of cost (purchase plus rehab) and up to 70% of the after-repair value, whichever is lower, and depends on the experience you can document over the past three years. Borrowers who have paid off two loans with the lending partner in good standing can qualify for 10.99% plus 1.99 points.
The margin is the spread between your all-in cost (purchase, rehab, interest, points, holding and selling costs) and the sale price. That spread is getting thinner: ATTOM's second-quarter 2026 report put the typical gross flipping profit at $60,526, a 21.5% return before costs, down from 27.6% a year earlier. Read the full fix and flip loan guide.
Bridge loans
Short-term money for an investor who has to close now and will sell or refinance later. Typical cases: an auction or a motivated seller who wants a quick close, buying before you have sold another property, or holding a property while a longer-term refinance is processed. The structure matches fix and flip financing without the renovation holdback.
Best for: time-sensitive purchases where the exit is clear but the timeline does not fit a bank. Read the full bridge loan guide.
Not sure which loan your deal needs?
Tell us the property, the plan and the exit. Our lending partner's team will say which program fits, if any. The lender makes every credit decision.
DSCR rental loans
Long-term financing for rentals, sized on the rent the property earns rather than your W-2 or tax returns. The debt service coverage ratio is the monthly rent divided by the monthly payment (principal, interest, taxes, insurance and any association dues). A ratio of 1.0 means the rent exactly covers the payment, and most lenders price better as the ratio rises above that.
Our lending partners' DSCR program has no minimum credit score and lends from $75,000 to $2 million at up to 80% of value. Market DSCR pricing in 2026 has commonly sat in the 6% to 8% range, depending on the ratio, credit and leverage.
Because DSCR lenders size the loan on the property rather than your personal debt-to-income, they are the usual next step for investors who have outgrown conventional limits. Read the full DSCR guide.
Construction loans
Ground-up financing on a lot you own or are buying. The lender sizes the loan on the finished value and releases money in draws as each stage is built and inspected. Lenders generally ask more of construction borrowers than of rehab borrowers: a stronger credit profile, completed projects, approved plans and permits, and a builder with a track record.
Best for: experienced investors in markets where new construction sells at a premium over renovated stock. Read the construction loan guide.
When conventional still wins
If the property is already rented and in good condition, your credit is strong and you can document your income, a conventional investment mortgage usually costs less than any private product. Freddie Mac's survey put the average 30-year fixed rate at 7.28% on October 1, 2026; that figure is for owner-occupied homes, and investment property pricing runs above it.
Conventional money has limits investors run into. Fannie Mae caps a borrower at ten financed properties when the loan is on a second home or investment property, and requires a 720 credit score once you hold seven to ten. Properties held in an LLC where you are not personally on the mortgage do not count toward that ten. Fannie Mae's HomeStyle Renovation program can finance renovation on a one-unit investment property, but it runs on a bank's timeline and documentation.
The trade-off is time and paperwork: full income verification, tax returns and bank statements, and a closing that commonly takes weeks longer. When neither is a constraint, conventional is cheaper. When the property needs work or the seller will not wait, it usually is not available at all.
Related guides
Hard money loan types and costs · Investment property loans · Rehab loans and draws · Hard money calculator · Private money lenders near you
Get your deal reviewed
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Investor loan questions
What types of loans are available for real estate investors?
Fix and flip, bridge, DSCR rental, construction and conventional investment mortgages. Each is built around a different strategy: flipping, gap financing, holding rentals, building, or buying a stabilized property with documented income.
Can I get a real estate investor loan with bad credit?
Often, yes. Our lending partners' fix and flip, rehab and bridge programs start at a 600 credit score, and their DSCR rental program has no minimum score. The property and the deal carry more weight than with a bank, though your score still affects terms.
How many investment properties can I finance?
Conventional loans backed by Fannie Mae stop at ten financed properties for investment purchases. DSCR and other private loans are sized on each property and do not use that count, although each lender sets its own exposure limits.
How much down payment do I need for an investment property loan?
It depends on the loan. Our lending partners' DSCR program lends up to 80% of value on a purchase, so you bring at least 20% plus costs. Their fix and flip program can reach 100% of cost, but only if that stays under 70% of the after-repair value, so most deals still need cash in.
Which loan is best for a first-time investor?
Whichever fits the plan and leaves a margin if things run late. A straightforward cosmetic flip in a market you know, or a rent-ready rental on a DSCR loan, teaches the process with less risk than a heavy rehab or a ground-up build.
Sources
- Freddie Mac, "Mortgage Rates Average 7.28%" (October 1, 2026), average 30-year fixed rate (accessed Oct 2026)
- Fannie Mae Selling Guide B2-2-03, Multiple financed properties for the same borrower, ten-property limit, 720 score for seven to ten, what counts (accessed Oct 2026)
- Fannie Mae Selling Guide B5-3.2-02, HomeStyle Renovation eligibility, one-unit investment property eligible (accessed Oct 2026)
- ATTOM, Q2 2026 U.S. Home Flipping Report, $60,526 typical gross profit and 21.5% margin, down from 27.6% (accessed Oct 2026)
- Crestmont Capital, Hard Money Loan Rates 2026, market range of about 8% to 15% interest and 1 to 4 points (accessed Oct 2026)
- RentalRealEstate.com, DSCR loans (updated April 2026), market DSCR rates in the 6% to 8% range (accessed Oct 2026)
Dominion Hard Money does not lend its own funds; it arranges financing through third-party lending partners. All financing is arranged for business purposes only and secured by non-owner-occupied investment property. Not a commitment to lend. All loans subject to underwriting, property review, and approval by the lender. Terms vary by property, borrower experience, and exit strategy.