The California Investor
Conventional Investment Property Loans
By JC Pacific Corp Last updated 2026-10-02
A conventional investment property loan is a mortgage on a rental property you do not live in, underwritten to stricter standards than owner-occupied loans. Expect a larger down payment, stronger credit and debt ratios, and more reserves, with terms and rates that vary by lender and borrower.
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Open the Rental Property CalculatorHow Investment Loans Differ
- Higher down payment requirements than primary residences
- Stricter credit and debt-to-income standards
- Larger reserve requirements in many programs
- Higher interest rates and, in some cases, higher fees
- Rent may be considered in underwriting, with limits
Common Requirements
Many lenders expect investment-property borrowers to put down at least 15 to 25 percent, depending on property type and loan program, with single-family homes generally easier to finance than condos or multifamily. Credit scores, debt-to-income ratios, and cash reserves all factor in. Requirements vary by lender and change over time.
Loan Limits and Property Types
Conforming loan limits, set for each county in California, cap mainstream financing, and larger loans may be jumbo or portfolio products with different rules. Property types include single-family homes, condos, townhomes, and small multifamily up to a few units, each with its own guidelines.
Prepare Your File
Get pre-qualified before you shop: lenders want to see income, assets, reserves, and your full debt picture. A pre-approval tells you what price range to search and strengthens your offers. Shop multiple lenders and compare current terms.
A Note on This Guide
Terms, rates, underwriting requirements, and program availability vary by lender and borrower and change frequently. Nothing here is lending advice, and JC Pacific is a real estate brokerage, not a lender. Verify current programs with licensed mortgage professionals.
Frequently Asked Questions
What down payment do I need for an investment property?
Commonly 15 to 25 percent or more depending on the lender, loan program, and property type. Requirements change, so verify with current lenders.
Can I use the expected rent to qualify?
Many lenders consider rental income in underwriting, often with limits and documentation requirements. The rules differ from an owner-occupied application.
Are investment loan rates higher?
Investment loans generally carry higher rates than owner-occupied loans because lenders see more risk. The exact rate depends on your credit, the property, and current market conditions.
Educational information
This guide provides general, educational information about California investment real estate. Any calculations, projections, or examples are estimates for educational and planning purposes only and do not constitute financial, tax, legal, lending, or investment advice. Market conditions, loan programs, rates, underwriting requirements, laws, and rules change over time, so verify current information with qualified professionals before making decisions. JC Pacific Corp is a real estate brokerage, not a lender, tax adviser, or law firm.
A note on financing: loan terms, interest rates, underwriting requirements, down payments, and program availability vary by lender and by borrower, and they change frequently. Nothing in this guide is an offer to lend. JC Pacific Corp is a real estate brokerage and is not a lender, mortgage broker, or loan originator. For your specific situation, obtain current quotes and program details from licensed mortgage professionals.
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