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’re purchasing your first rental property or adding to an existing portfolio, First Commerce Financial offers the loan programs and experience to get it done.

We offer conventional, jumbo, and DSCR investment property loans across Michigan, Arizona, Florida, and Texas — with no junk fees and complete transparency on costs.

Investment Property Loan Programs

Conventional Investment Property Loans

Conventional loans are available for 1–4 unit investment properties and follow Fannie Mae/Freddie Mac guidelines. Key features:

• Down payment: typically 20-25% for single-family, more for 2-4 units
• Credit score: generally 680+, with 720+ getting the best rates
• Up to 75% of rental income can be used to help qualify
• Rates are higher than primary residence — typically 0.5%–1.5% higher
• Available for single-family homes, condos, and 2-4 unit properties

Conventional investment loans work well for borrowers with strong W2 income and solid credit who are buying in a market with reliable rental demand.

DSCR Loans — Qualify Based on the Property, Not Your Income

A Debt Service Coverage Ratio (DSCR) loan is one of the most powerful tools available to real estate investors — especially those who are self-employed, have complex tax returns, or own multiple properties.

Instead of qualifying based on your personal income, a DSCR loan qualifies based on the property’s rental income versus its mortgage payment. If the rent covers the mortgage, the deal works.

• No personal income verification required
• No limit on the number of properties you can own
• Works for short-term rentals (Airbnb/VRBO) using market rent estimates
• Typically requires 20–25% down payment
• Available for 1–4 unit residential investment properties

DSCR loans are calculated using a simple ratio: if monthly rent is $2,000 and the mortgage payment is $1,600, the DSCR is 1.25 — most lenders want 1.0 or higher.

Jumbo Investment Property Loans

For higher-priced investment properties — particularly in markets like Scottsdale, South Florida, or Austin — where the loan amount exceeds conventional limits, jumbo investment property financing is available. Strong credit, significant reserves, and 25%+ down payment are typically required.

First-Time Investor? Here’s What to Know

If this is your first investment property, here are the key things to understand before you start:

• Investment property loans require a larger down payment than primary residences — plan for 20–25% minimum
• Rates are higher than primary residence rates — factor this into your cash flow analysis
• Lenders will look at your reserves — most want to see 6 months of mortgage payments in savings after closing
• Your existing debts count against you — even if your primary residence mortgage is manageable, lenders look at your full debt-to-income picture
• A pre-approval before you make offers is essential — investment properties move fast in competitive markets

Experienced Investor? Here’s How We Help You Scale

If you already own investment properties and are looking to grow your portfolio, DSCR loans are often the key — they remove the income documentation hurdles that conventional loans create when you own multiple properties and have complex tax returns from depreciation and rental losses.

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 limits.

Strong Rental Markets We Serve

All four states we lend in have strong rental demand — here’s a quick snapshot:

• Florida — strong year-round rental demand in Tampa, Orlando, Jacksonville, and South Florida; short-term rental markets in beach areas
• Arizona — Phoenix metro and Scottsdale continue to attract renters; strong long-term rental demand driven by population growth
• Michigan — Detroit metro has some of the best cash flow numbers in the country; strong demand in Grand Rapids and Ann Arbor
• Texas — Dallas, Houston, Austin, and San Antonio all have robust rental markets driven by job growth and in-migration

Frequently Asked Questions

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 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.

Can I use rental income to 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 isn’t used at all.

What’s the minimum credit score for an investment property loan?

For conventional loans, most lenders want 680+, with 720+ getting the best rates. DSCR loans vary by lender but typically require 660–680 minimum. We’ll pull your credit early and tell you exactly where you stand.

How many investment properties can I own and still get a mortgage?

With conventional loans, Fannie Mae allows up to 10 financed properties — but guidelines get stricter after 4. DSCR loans typically have no limit on the number of properties, making them ideal for investors building larger portfolios.

Can I use a DSCR loan for an Airbnb or short-term rental?

Yes — many DSCR lenders will use short-term rental income (based on market data from platforms like AirDNA) to calculate the DSCR. This makes DSCR loans a great option for vacation rental investors in markets like Scottsdale, Florida beach towns, or Northern Michigan.

Let’s Talk About Your Investment Strategy

Whether you’re buying your first rental or your fifteenth, we’ll find the right financing for your deal — and make sure the numbers work before you commit.

Licensed in Michigan, Arizona, Florida, and Texas.

📞 Call us at (248) 459-5511

✅ Or get started online — no cost, no obligation.