Build Wealth Through
Real Estate
From single-family rentals to multi-family properties, Theós Financial provides specialized financing solutions for real estate investors at every level.
Last updated: March 2026
Investment Property
Loan Programs
Investment properties have different rules than primary residences. Down payments are higher, rates are slightly elevated, and qualification criteria differ. Here are the programs we offer for investors.
Conventional Investment Loans
The standard path for investment property financing. Requires 15-25% down payment depending on property type and number of units. You will need strong credit (typically 680+), documented income, and cash reserves equal to six months of mortgage payments.
- 15% down for single-family
- 25% down for 2-4 units
- Up to 10 financed properties
- Competitive fixed and ARM rates
DSCR Loans
Debt Service Coverage Ratio loans qualify based on the property's rental income — not your personal income. If the property's rent covers the mortgage payment (typically at a 1.0-1.25x ratio), you can qualify regardless of your W-2 or tax returns. Ideal for self-employed investors and those with complex tax situations.
- No personal income verification
- Based on property cash flow
- Close in LLC or entity name
- No limit on number of properties
Multi-Family Financing
Financing for duplexes, triplexes, and fourplexes. If you live in one unit (owner-occupied), you may qualify for FHA or conventional financing with as little as 3.5% down — a powerful house-hacking strategy. Non-owner-occupied multi-family requires 25% down but allows you to use rental income from other units to qualify.
- 2-4 unit properties
- FHA available for owner-occupied
- Rental income counts toward qualification
- House-hacking strategies
Second Home vs.
Investment Property
Lenders classify properties differently, and the classification affects your rate, down payment, and tax treatment. Understanding the distinction is critical for investors.
Primary Residence
The home you live in most of the year. Offers the best rates and lowest down payments (as low as 0-3.5%). You must occupy the home within 60 days of closing and live there for at least one year. Most favorable tax treatment including the mortgage interest deduction and up to $250,000/$500,000 in capital gains exclusion.
Second Home / Vacation Home
A property you use personally for part of the year that is not your primary residence. Must be at least 50 miles from your primary home (in most cases). You can rent it out for part of the year, but it must be available for your personal use. Requires 10% down minimum. Rates are slightly higher than primary residence but lower than investment property.
Investment Property
Any property purchased primarily for income generation or appreciation. You do not live in it — it is rented to tenants full-time. Requires 15-25% down. Rates are typically 0.5-0.75% higher than primary residence rates. However, you can deduct mortgage interest, property taxes, insurance, repairs, and depreciation against your rental income.
Misrepresentation Warning
Claiming a property is a second home when it is actually an investment rental is mortgage fraud. Lenders verify occupancy, and the consequences are severe — including loan acceleration, criminal charges, and being blacklisted from future lending. At Theós, we help you structure your purchase correctly and legally from the start.
Using Rental Income
to Qualify
One of the biggest advantages of investment property financing is the ability to use projected or actual rental income to help you qualify. Here is how lenders typically calculate it.
Conventional Rental Offset
Lenders use 75% of the property's expected rental income (based on an appraisal or lease agreements) to offset the mortgage payment. If rent is $3,000/month, $2,250 counts against the $2,500 mortgage payment, leaving only $250 added to your debt-to-income ratio.
DSCR Calculation
For DSCR loans, the lender divides the property's gross rental income by the total monthly housing expense (PITIA). A DSCR of 1.0 means income equals expenses. Most lenders require 1.0-1.25. Higher DSCR ratios get better rates.
Cash Reserve Requirements
Investment property loans typically require 6 months of mortgage payments in reserve for the subject property, plus 2 months for each additional financed property you own. This ensures you can weather vacancies and unexpected expenses.
Higher Down Payments,
Higher Returns
Investment properties require larger down payments than primary residences — typically 15-25% depending on property type and loan program. While this is a significant upfront investment, it also means more equity from day one, lower monthly payments, and better cash flow.
For a single-family investment property, expect to put 15-20% down on a conventional loan. For 2-4 unit properties, the requirement rises to 25%. DSCR loans typically require 20-25% down. If you choose to house-hack — living in one unit of a multi-family property — you may qualify for FHA (3.5% down) or conventional (5% down) financing, making it one of the most powerful wealth-building strategies available to new investors.
Remember: every dollar of down payment reduces your loan amount, which reduces your monthly obligation and improves your cash flow. Many experienced investors aim for 25% down even when lower options are available, because the improved cash flow and lower rate more than justify the larger upfront investment.
Ready to Build Your
Real Estate Portfolio?
Whether you are purchasing your first rental property or expanding an existing portfolio, Theós Financial has the expertise and loan programs to make it happen. Get a personalized rate quote today.