How to Finance New Properties After Securing a Few?

Question

I currently own a few investment properties and am looking to finance additional ones. Many banks, like BOFA and Citi, have limits on the number of financed properties they support. I’d love to hear from other investors—how have you secured financing for new properties after reaching these limits? And are those financing options gonna be more expensive than conventional mortgage from a bank?

Clayton Silva · Answer

Good problem to have! You'll have to pivot to NonQM (non qualified mortgages) such as DSCR loans or bank statement loans.  Good news is that they are easier loans with less paperwork and underwriting.  Also good news is that the rates right now are typically comparable to even conventional investments (sometimes about .25-.5% higher rate but we have seen them dead even as well).

Pros to DSCR:

1) No tax returns...this means, if you are self employed or have a lot of rentals, you can maximize the tax advantages and claim expenses without having to worry about showing income to qualify for more homes.

2) comparable rates to conventional lending and still 30 year fixed terms!

3) Can close in an LLC or in your personal name.

Cons to DSCR:

1) The biggest con is the prepayment penalty.  DSCR loans come with a prepayment penalty in most states but you can often pick the penalty and the duration (example: a 2 year pre payment penalty vs a 5 year).  This means that if you refinance or sell the property inside of the selected pre payment penalty, you will incur a fee which can impact flexibility if the rates shift or you have the need/desire to sell).

Hope this helps!

Jay Hurst · Answer

@Sushil Gupta    Fannie/Freddie will only allow you to have 10 financed residential properties IF looking to finance  a new investment property. This is for ALL lenders not just big banks.  https://selling-guide.fanniemae.com/sel/b2-2-03/multiple-fin...  It is important to note there is NO limit to financed properties if the loan is for a primary residence.

Loan products that are NOT going to be sold to Fannie/Freddie can make up their own rules. Some products might limit you to 20 properties financed while some might not have ANY limit. It is also important to understand that a lender will likely have access to more then just one product so the LO's job is to understand your situation and know which product would fit your particular situation.

Mike Grudzien · Answer

DSCR is my vote.

Debbie Fales · Answer

I agree with most commenters that a DSCR loan seems like your best bet. Here are a few details on what we offer:✅ Purchase, Rate Refinance, Cash-Out Refinance✅ Loans From $100K to $3.5M ✅ Residential Single(1-4 Units) And Multi-Family (5-8 Units)✅ 30-year, 20-year, and 15-year Fixed OR 5, 7, and 10-year ARM ✅ Credit 640+

The more experience you have and the higher your credit score, the better your rate and terms. Hope this is helpful. Good luck!

Givo Aghasi · Answer

@Sushil Gupta Investors are leveraging DSCR loans to acquire or refinance rental properties without needing to verify personal income—especially useful with rising rates and stricter bank requirements. For short-term projects, fix & flip loans and bridge loans remain popular, helping investors move quickly on distressed properties or value-add opportunities.

Mike Klarman · Answer

You won't beat the rates of conventional, but if the asset is good and it cashflows well then that's all that matters.

You'll need to open an LLC and put the properties in the entity and then you can apply for Hard Money loans and most lenders will go at least 2 million deep with someone in loans.  Some have no cap.

Roland S. · Answer

@Sushil Gupta Hey, I’ve been there—bank limits (like BOFA or Citi’s 4-10 financed property caps) can stall growth fast. Many investors turn to hard money lenders or private money for additional properties—faster, no bank restrictions, but rates (10-15%) and points (2-5%) are higher than conventional mortgages (3-7%). Portfolio lenders or local credit unions sometimes offer alternatives with better terms if you’ve got strong cash flow.

Erik Estrada · Answer

I am going to agree with all the posters here and say, DSCR/NON QM lending will be your best bet. You may want to try a local portfolio bank, but I wouldn't stress over it if it's only saving you a few bps on the rate. You can very easily get a solid low 7 rate on a DSCR loan with a decent PPP.

Deborah Wodell · Answer

Great question! Once you hit conventional loan limits, many investors turn to hard money or non-QM loans to keep scaling. Here’s how they can help:

✅ Hard Money Loans – Ideal for fast closings, fix-and-flips, or properties that need rehab. These are asset-based, meaning lenders focus on the property’s value rather than your income. While rates are higher, they offer speed and flexibility.

✅ DSCR (Non-QM) Loans – Perfect for rental properties. These loans qualify you based on the property’s rental income, not your personal debt-to-income ratio. They’re a go-to for investors with multiple properties.

✅ Portfolio Loans – Some lenders offer blanket loans to cover multiple properties under one loan, making financing easier.

✅ Seller Financing – If a seller is open to it, you can negotiate terms that work for both parties.

Hard money and non-QM loans do have higher rates than traditional bank loans, but they allow you to keep growing without being limited by big banks' property caps.

How to Finance New Properties After Securing a Few?

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