Conventional loan for an investment property

[James Dale]

Hello everyone,

I am about to close on my first property! We are very excited but I do have some questions for my next purchase. My lender ran this loan as a DSCR and my rate came back at 9.5! I was under the impression I could use a conventional loan with a lower rate on an investment property but the lender states that loans like this are hard to get since they are not your primary residence. I swear I've read about many of you using conventional loans to a certain point and then switching to DSCR due to limitations. Am I wrong? Any information you guys have for me is greatly appreciated!

Thank you

[Robin Simon]

Quote from @James Dale:

Hello everyone,

I am about to close on my first property! We are very excited but I do have some questions for my next purchase. My lender ran this loan as a DSCR and my rate came back at 9.5! I was under the impression I could use a conventional loan with a lower rate on an investment property but the lender states that loans like this are hard to get since they are not your primary residence. I swear I've read about many of you using conventional loans to a certain point and then switching to DSCR due to limitations. Am I wrong? Any information you guys have for me is greatly appreciated!

Thank you

I would shop around a bit regarding DSCR - its certainly possible the best rate you qualify for is 9.5% (Rates have unfortunately ticked up recently), however theres a good chance you can find better.

I'd recommend checking out BiggerPockets Find A Lender program https://www.biggerpockets.com/business/finder/lenders

and the featured Mortgage Lenders page https://www.biggerpockets.com/loans