Real estate is one of the most powerful wealth-building tools available — and financing it correctly is as important as finding the right deal. Whether you are purchasing your first rental property or adding to an existing portfolio, the right loan structure directly affects your cash flow, your qualification, and your ability to scale.
At First Commerce Financial we offer conventional, jumbo, and DSCR investment property loans across Michigan, Arizona, Florida, and Texas. No junk fees. No runaround. Ken owns investment properties in Tempe — this is not a loan type we just process. It is one we understand from the investor's side of the table.
🏠 Conventional Investment Loan
Follows Fannie Mae and Freddie Mac guidelines. Strong qualification for W2 borrowers with solid credit and income. Up to 75% of market rent counts toward qualifying income. Best for first-time investors with straightforward tax returns and strong personal income documentation.
📈 DSCR Loan
Qualifies based on the property's rental income — not your personal income. No tax returns, no W2s, no personal income verification. The most powerful tool for self-employed investors, landlords with complex returns, and portfolio investors. No limit on number of properties owned.
🏭 Jumbo Investment Loan
For higher-priced investment properties that exceed conventional loan limits. Available in markets like Scottsdale, Sarasota, Austin, and Oakland County Michigan where rental properties regularly exceed $832K. Strong credit and 25%+ down payment typically required.
📈 What Is a DSCR Loan?
A Debt Service Coverage Ratio (DSCR) loan qualifies you based on the property's rental income relative to its mortgage payment — not your personal income. If the rent covers the mortgage, the deal works. This removes the biggest obstacle most experienced investors face: complex tax returns that show low taxable income due to depreciation and other deductions.
Most lenders require a DSCR of 1.0 or higher — meaning rent at least covers the mortgage. Some programs go as low as 0.75 DSCR for strong borrowers. We will tell you the exact DSCR requirement for your scenario and whether the deal qualifies before you make an offer.
- No personal income verification — no W2s, no tax returns, no pay stubs
- No limit on the number of properties you can own
- Works for short-term rentals (Airbnb/VRBO) using market rent estimates from AirDNA
- Typically requires 20–25% down payment
- Available for 1–4 unit residential investment properties
- 660+ credit score for most programs — 720+ gets the best rates
🏠 Down Payment
Conventional investment loans typically require 20–25% down for single-family properties and up to 25–30% for 2–4 unit properties. DSCR loans generally require 20–25% down. Jumbo investment loans require 25% or more. We tell you the exact requirement for your property type and loan program upfront.
📈 Credit Score
Conventional investment loans require 680+ minimum — 720+ for the best rates. DSCR loans typically require 660–680 minimum depending on the lender. Every 20-point improvement in your credit score can meaningfully impact your rate on an investment property loan. We pull your credit early and tell you exactly where you stand.
💰 Cash Reserves
Investment property lenders typically require 6 months of mortgage payments in liquid reserves after closing — for both your primary residence and the investment property. Some lenders require more for portfolio investors or multi-unit properties. We give you the specific reserve requirement for your scenario before you apply.
📊 Rental Income
For conventional loans, up to 75% of the property's market rent or actual rent (if currently leased) can be used toward your qualifying income. For DSCR loans, the property's rent is the primary qualification factor — your personal income is not used at all. We will calculate both scenarios and tell you which produces the better qualification outcome.
🏭 Property Types
Conventional and DSCR investment loans are available for single-family homes, condos, townhouses, and 2–4 unit residential properties. Condos require project approval review. 5+ unit properties move into commercial lending territory — we can discuss those scenarios separately.
📈 Portfolio Limits
Conventional Fannie Mae guidelines allow up to 10 financed properties — but guidelines become more restrictive after 4. DSCR loans typically have no limit on the number of properties, making them the preferred tool for investors building larger portfolios who have hit conventional limits.
Ken Owns Investment Properties in Tempe — This Is Personal
Ken Turkington owns multiple investment properties in Tempe, Arizona — near Arizona State University, one of the largest universities in the country. He understands investment property financing from the investor's side of the table: the cash flow analysis, the DSCR math, the reserve requirements, and the difference between a deal that works and one that looks good on paper but does not pencil out when you factor in all the carrying costs.
When you talk to Ken about an investment property loan, you are not talking to someone reciting guidelines from a manual. You are talking to a landlord who has been through the process himself and can walk you through it with the context that only comes from having skin in the game.
☀ Arizona — Phoenix Metro and Tempe
Phoenix metro continues to attract renters driven by population growth, corporate relocations, and a warm climate. Tempe — home to Arizona State University and 80,000+ students — has exceptional rental demand year-round. Ken owns investment properties here and knows this market as a landlord, not just a lender.
🌴 Florida — Jacksonville, Sarasota, and Beach Towns
Florida has strong year-round rental demand across Jacksonville and Northeast Florida, the Sarasota-Bradenton corridor, and short-term rental markets throughout Gulf Coast beach communities. Venice, Nokomis, and Englewood are active markets for both long-term and vacation rental investors.
🏛 Michigan — Metro Detroit and University Markets
Metro Detroit has some of the best cash flow numbers of any major metro in the country — strong rental demand and lower acquisition costs than coastal markets. Ann Arbor (University of Michigan) and East Lansing (Michigan State) also produce strong student rental demand. Kirk and Ken have been lending in Michigan since 1997.
⭐ Texas — Dallas, Houston, Austin, and San Antonio
All four major Texas metros have robust rental markets driven by job growth, population migration, and no state income tax. Texas's landlord-friendly legal environment makes it one of the most attractive states in the country for real estate investors. We are active across the entire state.
If this is your first investment property, here are the most important things to understand before you start making offers:
- Plan for 20–25% down minimum. Investment properties require more skin in the game than primary residences — this is non-negotiable with conventional lenders.
- Rates are higher than primary residence rates. Typically 0.5%–1.5% higher — factor this into your cash flow analysis before you fall in love with a deal.
- Your reserves matter. Most lenders want 6 months of mortgage payments in liquid savings after closing. Do not assume your down payment is the only cash you need.
- Your existing debts count. Even if your primary residence payment is comfortable, lenders look at your full DTI picture including all existing obligations.
- Get pre-approved before you make offers. Investment properties move fast in competitive markets — especially well-priced single-family rentals. A pre-approval letter in hand before you start touring is essential.
If you already own investment properties and are looking to grow your portfolio, DSCR loans are often the answer. They remove the income documentation hurdles that conventional loans create when you own multiple properties and have complex tax returns from depreciation, rental losses, and Schedule E income.
We work with investors who own anywhere from 1 to 20+ properties and understand how to structure financing that keeps your portfolio growing without hitting conventional loan count limits or DTI walls. If you are at that inflection point where conventional financing is becoming harder to get, talk to us about DSCR — it is often exactly the tool you need to keep scaling.
How much do I need to put down on an investment property?
For conventional investment property loans, plan for 20–25% down on a single-family property and up to 25–30% on a 2–4 unit. DSCR loans typically require 20–25% down as well. The exact requirement depends on your credit score, loan amount, and property type. We tell you the specific number for your scenario before you start shopping.
What is the minimum DSCR ratio required?
Most DSCR lenders require a minimum ratio of 1.0 — meaning the monthly rent at least equals the total monthly mortgage payment (principal, interest, taxes, insurance, and HOA if applicable). Some programs will go as low as 0.75 DSCR for strong borrowers with significant assets. We calculate the DSCR for your specific property and tell you where you stand before you apply.
Can I use a DSCR loan for an Airbnb or short-term rental?
Yes — many DSCR lenders will use short-term rental income estimates from platforms like AirDNA to calculate the DSCR for properties in active short-term rental markets. This makes DSCR loans a strong option for vacation rental investors in markets like Scottsdale, Florida beach towns, and Northern Michigan. We will tell you which lenders accept short-term rental income documentation for your specific market.
How many investment properties can I own and still get a mortgage?
With conventional Fannie Mae loans, you can have up to 10 financed properties — but guidelines become progressively more restrictive after 4. DSCR loans typically have no limit on the number of properties, making them the preferred tool for investors who have hit or are approaching conventional loan limits. We structure the right combination of conventional and DSCR financing to keep your portfolio growing.
Can I use rental income to help me qualify?
For conventional loans, up to 75% of the property's market rent (or actual rent if currently leased) can be used toward your qualifying income. For DSCR loans, the property's rental income is the primary qualification factor — your personal income is not used at all. We will run both scenarios for your situation and tell you which produces the better qualification outcome.
What is the minimum credit score for an investment property loan?
For conventional investment loans, most lenders require 680+ with 720+ getting the best rates. DSCR loans vary by lender but typically require 660–680 minimum. On investment property loans, credit score has a significant impact on both rate and down payment requirements — we pull your credit early and tell you exactly where you stand and what the options are at your current score level.
Can I refinance an investment property with a DSCR loan?
Yes — DSCR loans are available for both purchases and refinances. If you own an investment property and want to pull cash out or lower your rate without the income documentation burden of a conventional refinance, a DSCR cash-out or rate-and-term refinance is worth exploring. We will run the numbers and tell you whether it makes financial sense for your specific property and situation.
Whether you are buying your first rental or your fifteenth, we will find the right financing for your deal — and make sure the numbers work before you commit. Ken owns investment properties himself and will give you the same straight advice he applies to his own real estate decisions. No pressure, no obligation, no junk fees.
Start Your Free Pre-ApprovalOr call or text Kirk or Ken directly at (248) 459-5511
First Commerce Financial | Licensed Independent Mortgage Broker | NMLS #137512 | AZ MB #1001354 | Licensed in Michigan, Florida, Arizona, and Texas | Ken Turkington NMLS #137873 | Kirk Chivas NMLS #160828
