True Blue Lending

Investment property

Treat the rental like a business.

Conventional NOO and DSCR financing for buy-and-hold landlords. Single-family, 2–4 unit, condo, short-term rental. Cash-flow qualification when tax returns do not tell the real story.

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The short version

Investment-property loans cover non-owner-occupied 1–4 unit residential — single-family rentals, duplex/triplex/fourplex, condos, short-term rentals (STRs), and small portfolios. Two main qualification paths: full-doc conventional (qualifies the borrower's personal income via tax returns) and DSCR (qualifies the property by its rent-to-PITIA ratio). Conventional pricing is tighter; DSCR pricing is wider but unlocks files where personal income won't qualify or the borrower wants to close in an LLC.

Programs covered

01Conventional NOO — 1-unit02Conventional NOO — 2-4 unit03DSCR — property cash flow qualifies04Bank statement / asset depletion (investment)05Foreign national investment06Portfolio loans — beyond 10 financed properties

Conventional NOO — 1-unit

Standard agency financing for single-family rentals

Fannie Mae or Freddie Mac investment-property financing on 1-unit non-owner-occupied homes (SFR or condo). Borrower qualifies on full-doc personal income — tax returns, paystubs, W-2s, plus rental income from any existing rentals (Schedule E) or projected rent from the subject property (Form 1007 market-rent estimate).

Best pricing of any investment-property product. The trade-off: agency limits the borrower to 10 financed properties total, so this is the right product for the first 10 rentals — and DSCR or portfolio takes over for #11 and beyond.

Min down payment15% (LTV cap 85%) — purchase
Cash-out LTV cap75%
Min credit680 (700+ for tightest pricing)
Reserves6 months PITIA per financed property
Max financed properties10 (Fannie/Freddie cap)
Eligible propertiesSFR, warrantable condo, PUD
Rental incomeSchedule E (existing) or Form 1007 (subject)

Right fit for

  • First through tenth rental property purchases (the agency-financed pipeline)
  • Refinances of free-and-clear rentals to extract equity
  • Move-up buyers retaining the prior primary as a rental
Mortgage payment calculatorFannie Mae — Selling Guide (B3-3.1-08, rental income)

Conventional NOO — 2-4 unit

Duplex, triplex, fourplex investment financing

Same agency framework as 1-unit NOO, scaled to 2–4 unit non-owner-occupied. 25% minimum down payment on purchase. Rental income from all units counts toward qualifying — typically 75% of gross rent (after agency-mandated 25% vacancy/maintenance haircut) is added to qualifying income.

Most efficient way to scale rental door-count without leaving conventional pricing. Four 4-unit properties = 16 doors at agency rates (counts as 4 financed properties against the 10-property cap, not 16).

Min down payment25% (LTV cap 75%) — purchase
Cash-out LTV cap70%
Min credit680
Reserves6 months PITIA per financed property
Counts toward 10-property capYes (one per parcel, not per unit)
Rental income haircut25% (agency vacancy/maintenance assumption)

Right fit for

  • Door-count scalers buying duplexes/fourplexes instead of single-families
  • House-hack exits — primary-residence 2–4 unit converts to NOO when borrower moves
  • Refinances of small multifamily portfolios into agency pricing

DSCR — property cash flow qualifies

No personal income docs — the rent qualifies the loan

Debt Service Coverage Ratio (DSCR) loans qualify the property by comparing gross monthly rent to PITIA (principal + interest + taxes + insurance + association). Standard target: DSCR ≥ 1.00 — rent at least covers the payment. We have programs that go below 1.00 with rate add-ons. No personal income documentation. No tax returns. No DTI calculation.

Closes in personal name or LLC. Eligible property types: 1–4 unit residential, condo (warrantable and non-warrantable), condotel, short-term rental. The default product for landlords above 10 financed properties or for files where personal income won't qualify. See the non-QM pillar for full DSCR program detail.

Min credit660 (700+ for best pricing)
Max LTV80% purchase, 75% cash-out
Reserves6 months PITIA per financed property
Min DSCR1.00 (sub-1.0 with overlay)
Loan amount$100K–$3M+
VestingLLC or personal name
No personal income docsNo tax returns, paystubs, W-2s, DTI

Right fit for

  • Buy-and-hold landlords scaling beyond 10 financed properties
  • Short-term rental operators (Airbnb, VRBO) using market-rent appraisals
  • Investors writing rental income way down on Schedule E who can't qualify on full-doc
  • BRRRR refinances out of hard money
See DSCR details

Bank statement / asset depletion (investment)

Alt-doc qualification when DSCR does not work and full-doc does not work

For investor borrowers whose tax returns understate income (heavy write-offs) but whose property won't hit DSCR ≥ 1.00. Two doors: (1) bank statement — 12 or 24 months of personal or business deposits qualify the borrower; (2) asset depletion — divide liquid assets by 60/84/120 months and treat as monthly income.

Used most often when buying in a market where rents have not caught up to acquisition price (DSCR < 1.0 territory) but the borrower has strong cash flow or substantial liquid assets to lean on.

Min credit660
Max LTV80% purchase
Reserves6–12 months PITIA
Bank-statement period12 or 24 months
Asset-depletion term60 / 84 / 120 months
VestingLLC or personal name

Right fit for

  • Sub-1.0-DSCR purchases in appreciation-driven markets
  • High-write-off self-employed investors who don't qualify full-doc
  • High-net-worth investors using asset depletion in lieu of W-2 income
See bank statement program

Foreign national investment

No US credit, no SSN, no problem

Non-US citizens with no US residency status purchasing US investment property. No US credit score required; lender pulls an international credit reference. Documentation centers on passport, US-bank-account-balance letter, and proof of funds for down payment + reserves seasoned in a US institution. Closes in personal name or US LLC.

Largest market: South Florida (Miami, Aventura, Sunny Isles), then California coastal markets. Pricing typically runs 1.5–2.5 points above prime jumbo with larger down payments and reserves.

CreditNo US credit required; international reference accepted
Max LTV70% purchase (75% case-by-case)
Reserves12 months PITIA, US-seasoned
Down payment30% minimum
VestingPersonal name or US LLC

Right fit for

  • Foreign investors buying South Florida or California vacation rentals
  • Latin American and European nationals diversifying into US real estate
  • Foreign-owned LLCs purchasing US investment property
See foreign national details

Portfolio loans — beyond 10 financed properties

When agency caps end, portfolio + DSCR begin

Once a borrower hits Fannie's 10-financed-property cap, agency conventional financing closes. Two paths forward: DSCR (one property at a time, no personal income docs) and portfolio (multiple properties bundled into a single loan held by a private investor).

Portfolio loans are most useful for refinancing 5+ properties into a single loan — one underwriting cycle, one closing, one monthly statement. Underwriting blends DSCR per property with borrower-level credit and reserves. Pricing runs 0.5%–1.5% above DSCR single-property pricing in exchange for the consolidation efficiency.

Min portfolio size5 properties (some programs 3)
Min credit680
Max LTV75%
Per-property DSCR≥1.10 portfolio-weighted (varies by program)
Loan amount$1M–$10M+
VestingLLC required

Right fit for

  • Landlords with 10+ financed properties consolidating into one loan
  • BRRRR investors taking 5–10 stabilized rentals out of hard money
  • 1031 exchange replacement properties bundled at acquisition

Frequently asked

What people ask before they apply.

Plain-English answers to the questions we hear most often on investment-property scenarios. Have one we missed? Call (707) 583-3666.

What is the difference between conventional NOO and DSCR?

Conventional NOO uses agency (Fannie/Freddie) underwriting and qualifies the borrower on personal income — tax returns, paystubs, W-2s, plus rental income. DSCR is a non-QM product that qualifies the property based on rent-to-PITIA ratio. No personal income documentation. Conventional pricing is tighter; DSCR pricing is wider. Use conventional while you have agency capacity (under 10 financed properties); use DSCR when you don't.

How is rental income calculated on an investment-property loan?

On a purchase: the appraiser fills out Form 1007 (Single-Family Comparable Rent Schedule) with the market-rent estimate for the subject. Lender applies a 25% vacancy/maintenance haircut and adds 75% of gross rent to qualifying income. On a refinance of an existing rental: the most recent tax-return Schedule E is the source — depreciation is added back, but operating expenses and mortgage interest are also reflected. New leases without 1 year of seasoning use the lease rent at 75%.

How many investment properties can I finance through Fannie Mae?

Up to 10 financed properties total per borrower (counted across all properties, including primary residence). Above 10, conventional doors close — DSCR or portfolio is the next step. The 10-property cap counts the primary residence and second homes as well, so a landlord with 8 rentals plus a primary plus a vacation home is at 10 and out of agency capacity for the next deal.

Can I close an investment-property loan in an LLC?

Conventional NOO does not allow LLC vesting — must be personal name. DSCR loans typically allow both LLC (most common) and personal-name vesting. Foreign national and portfolio loans usually require LLC. If LLC vesting matters to you (anonymity, asset protection, multiple-investor structures), DSCR is the program.

Are short-term rental properties (Airbnb/VRBO) financeable?

Yes, on DSCR. Most DSCR programs accept short-term rental income — either via the Form 1007 long-term market-rent estimate (most conservative), or via an STR-specific appraisal addendum that prices based on AirDNA / projected nightly rate × occupancy × 365. Conventional NOO typically requires 12–24 months of long-term lease history, so it's not the right fit for a fresh STR purchase.

What is the minimum down payment on an investment property?

15% on a 1-unit conventional NOO purchase (the lowest in residential lending for non-owner-occupied), 25% on a 2–4 unit conventional NOO. DSCR programs typically require 20%–25% on 1-unit, 25%–30% on 2–4 unit. Foreign national: 30%+. Portfolio: 25%+. Cash-out refinances on any of these run 5%–10% lower max LTV than purchases.

How is investment-property pricing different from owner-occupied?

Investment-property rates run 0.50%–1.50% higher than owner-occupied for an equivalent file. The premium reflects higher default risk on non-owner-occupied loans. Cash-out adds another 0.25%–0.50%. Lower credit, lower DSCR, sub-warrantable condos, condotels, and short-term-rental use cases each add their own pricing layers.

Can I use rental income from a property I'm buying to qualify?

On conventional NOO: yes, via Form 1007 (75% of estimated market rent counts). On DSCR: the entire qualification is based on subject-property rent — so yes, by definition. On a primary residence with a 2–4 unit (house hack), 75% of the rent from the additional units counts toward qualifying income — same rule. If the property has existing leases at closing, those leases set the rent figure; if vacant, the appraiser's market-rent estimate is used.

Authoritative sources

Where the rules come from.

Independent references for everything claimed on this page. We cite primary sources so you can verify before you decide.

Fannie Mae — Selling Guide (B3-3.1-08, rental income)

Authoritative source for conventional NOO underwriting and rental-income calculation.

Freddie Mac — Single-Family Seller/Servicer Guide

Freddie's parallel reference for LPA-routed investment files.

IRS — Topic 414 (Rental Income and Expenses)

Federal rules on Schedule E reporting that drive conventional rental-income calculations.

CFPB — Ability-to-Repay & Qualified Mortgage rule

Federal rule that DSCR and other non-QM investment loans satisfy via property cash flow.

NMLS Consumer Access

Verify True Blue Lending's license (NMLS #2380218).

Reviewed by

Jesse Gonzalez, President

NMLS #278103 · Last reviewed April 25, 2026

Ready when you are

Tell us the deal.

Twenty-minute call. Address, asking price, projected rent, and how many properties you currently own. We'll quote conventional NOO and DSCR side-by-side and tell you which one closes faster and cheaper for your specific deal.

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Prefer to talk first? Call (707) 583-3666