5 Best Investment Property Lenders (2024 Comparison)

Investment property lenders provide loan options specifically for real estate investors looking to purchase or refinance investment properties (e.g., fix and flip loans, DSCR loans, bridge loans). Unlike large banks, they don’t underwrite your financial profile and ask you to submit income verification and tax returns; instead, they evaluate the economics of the deal. 

This way, investors can finance deals while avoiding the bureaucracy and 75+ day closing of large banks.

That said, not all investment property lenders are the same. Finding a good lender can be the difference between closing quickly (and winning a deal against a cash buyer) or wasting two months before learning your lender isn’t going to close.

We’ve been funding investment property loans for several years, and in our experience, here’s how you can gauge the efficiency of a lender:

1. How quickly can they issue term sheets and loan approval? Lenders say on their websites that they can close within 14 days, but the ability to actually do this is rare. Many lenders have inefficient application processes, which causes closing to take upwards of 40 days, making it difficult to compete with cash buyers. In our experience, the best way to tell a lender's closing efficiency is to look at how quickly they issue term sheets and loan approval. If this takes multiple days, then it’s unlikely things will speed up as you approach closing.

2. Are they a direct lender? We recommend only partnering with direct lenders because it means you're communicating directly with the financiers of your loan. They are naturally well-versed in their lending criteria and can say if you qualify immediately after reviewing your documents. Brokers simply connect you to a lender, so they can only give you a yes or no after the lender has finished underwriting. If there's a problem that the broker failed to recognize, it can cause the lender to reject your application after weeks of underwriting.

3. Do they offer instant quotes? The best lenders have automated pricers, which allow you to price out different loan scenarios and generate instant quotes. You shouldn't have to wait several days for a loan officer to contact you and answer numerous questions before receiving a quote.

4. Do they underwrite your personal financial profile? Some investment property lenders may consider your personal financials when determining your eligibility. This can make qualifying difficult if you have a high DTI ratio or don't earn W2 income. Instead, we suggest going with a lender who evaluates the property's profit potential and not your financial profile.

We find that many lenders fail to meet one or more of the above requirements. They take upwards of 40 days to close, which makes it almost impossible to match the speed of cash buyers, or they are brokers who source funding from a third-party lender.

To help borrowers choose a reliable lender who meets all the requirements above, we cover the five best investment property lenders below. We start with a deep dive into ourselves, Constitution Lending and how we designed our lending process to allow us to close faster and more reliably than other lenders.

We also look at a few other options on the market, like Lima One Capital, RCN Capital, BridgeWell Capital, and Griffin Funding.

You can use our automated loan pricer to generate a quote within seconds.

1. Constitution Lending: Best Direct Lender for Fast, High-LTV Loans

Constitution Lending is a direct lender that specializes in helping borrowers quickly and reliably purchase investment properties.

Before we founded Constitution Lending, we invested in real estate and ran into two major problems with lenders:

1. They couldn't close quickly: Most lenders took more than 40 days to close despite saying they could close within 14 days. This made it difficult for us to capitalize on good deals.

2. They couldn't close without last-minute drama: Many lenders would reject our application right before we were about to close, even though they initially told us we could easily qualify. We learned this was happening because we were dealing with brokers and not the lenders themselves.

This is why we founded Constitution Lending. We wanted to help borrowers close quickly and without worrying about last-minute rejections. Here's how we achieve that:

• Our automated pricer and documents portal allows us to close faster than most lenders. Borrowers can enter a few details into our loan pricer and get an instant quote, term sheet, and pre-approval letter. Then, they can submit all documents through our online portal in one go. There's no waiting for a loan officer to call you.

• We're a direct lender financing loans with our own capital. This means we know exactly what requirements you must meet in order to qualify and can give you a definitive answer early in the engagement; we don't have to wait for approval from another lender. This ensures your loan doesn't get rejected at the last minute.

Here’s what some of our clients say about our lending process:

Let’s delve deeper into the specifics of our lending process.

How Constitution Lending Closes Within 7 to 14 Days

We can close faster than most lenders because our automated pricer allows borrowers to generate multiple quotes and apply for the one they like without spending an hour on the phone with a loan officer.

Additionally, our online documents portal enables borrowers to submit all documentation on the spot without waiting for a loan officer to get back to them on whether there’s more paperwork required. Borrowers can also stay updated on their loan application's progress and message our team with any questions. 

This is what the entire process looks like:

1. Using our automated pricer, you can enter details such as the property type, location, your FICO score, and the loan you're interested in, and you'll receive three quotes, which look like this:

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2. Here, you can play around with the property's value, loan amount, rental income or rehab budget (if it's a fix-and-flip) to see how these values affect your interest rates and monthly payments. If you'd like to qualify for one of these quotes, select it and enter your contact information. We'll send you a term sheet and loan approval immediately.

3. At the same time, we give you access to our online documents portal, where you can submit all the required documentation. Depending on the type of loan — fix and flip loan, DSCR loan, bridge loan, or construction loan — these documents may include bank statements, entity documents, purchase contracts, proof of mortgage insurance, and scope of work.

4. Finally, we review your documents and close with the title company.

This efficient process has contributed to us reliably closing loans within 7 to 14 days. In some cases, we've even closed within four days.

Constitution Lending is a Direct Lender

As we noted earlier, Constitution Lending is a direct lender, so you’re working with the team that finances your loan and who has the final say on whether you’re approved. You aren’t talking with a broker who connects you with an actual lender and has no say in your loan application.

Because we’re funding the deal with our capital, we create our own lending requirements and understand what a borrower must do to qualify. We know whether you qualify as soon as you submit documents through our online portal. We don’t have to ask another lender to underwrite for three weeks before giving you a concrete answer.

If there is an issue with your loan application, such as the property’s income potential being too low, we’ll notify you after you submit your documents. This allows you to focus on correcting this before applying again instead of being notified at the last minute.

Loan brokers rarely know what qualifications a borrower must meet to qualify because they work with several different mortgage lenders at once, each with their own lending criteria. 

So, the broker has to submit your loan application to the lender for underwriting (which takes multiple weeks) to determine if you qualify. If the lender sees a discrepancy and you’re very close to the closing date, it can lead to rejections late in the application process.

Get Started

Constitution Lending has originated over $200 million in loans since its founding in 2018. We’ve helped everyone, from real estate investors with 20 years of experience to brand-new investors, secure fix-and-flip loans, DSCR loans, bridge loans, and construction loans.

Due to the differentiators mentioned above, 92% of real estate investors stay with us for at least two years, and 88% for three years or more.

You can qualify for quick and reliable funding by generating an instant quote using our automated pricer.

2. Lima One Capital

Lima One Capital is an investment property lender that offers various hard money loan products to help borrowers purchase long-term investment properties, fund fix-and-flip projects, and secure short-term bridge financing.

Loan Products

• Fix-and-flip: Borrowers can access quick, high-LTV loans to fix up a property and then either sell it for a profit or convert the fix-and-flip loan into a long-term rental loan and generate cash flow from tenants.

• Ground-up construction loans: Lima One also offers flexible, high LTC loans for builders who want to build homes from the ground up.

• DSCR (debt-service coverage ratio) loans: If home buyers have a high DTI ratio and want to purchase a property and rent it out long-term, they can use Lima One’s DSCR loans.

• Bridge loans: Lima One has interim financing homeowners can use to buy a property while waiting for their current property to sell.

Loan Requirements and Additional Information

• Fix and flip loans go up to 92.5% LTC and 75% LTV.
• Loan amounts from $75,000 to $3 million are available.
• 13, 19, and 24-month term loan programs are available.
• Loans can be used to purchase 1-4 unit residential properties.
• For bridge loans, borrowers can qualify for up to 80% LTV or in other words, they must have at least 20% home equity.
• Cash reserves are required for a fix-and-flip loan.
• First-time homebuyers can qualify.

How to Apply

To apply for an investment property mortgage with Lima One, you must fill in the contact form on their website. A loan officer will then phone you and provide you with a quote.

3. RCN Capital

RCN Capital is a Connecticut-based lender that allows borrowers to refinance or purchase real estate using different types of loans. This includes fix-and-flip loans, bridge loans, long-term rental loans, cash-out refinance loans, and home equity loans.

Founded in 2010, RCN mainly caters to real estate investors with high DTI ratios or who don’t earn W2 income and can’t qualify for conventional loans. This is because RCN doesn’t consider the borrower’s income or DTI ratio when underwriting but rather the property they want to purchase.

RCN currently operates in all U.S. states except Alaska, Nevada, North Dakota, South Dakota, and Vermont.

Loan Products

• Fix and flip loans: Borrowers can capitalize on quick, short-term financing to rehab investment properties.

• Long-term rental loans: Borrowers can buy investment properties that they plan to hold for a long time.

• Multifamily mortgage loans: Borrowers can purchase 5+ unit apartments.

• New construction loans: Borrowers can source the financing required to build investment properties from the ground up.

Loan Requirements and Additional Information

• DSCR mortgage rates begin at 6.99%.
• Fix and flip loans have higher interest rates, beginning at 10.75%.
• Borrowers can qualify for loan amounts between $50,000 and $2 million.
• For 5+ unit multi-family properties, the maximum loan amount is $2.5 million
• Loans can be used to buy one to four-unit properties, condos, and townhouses.
• A FICO score of at least 660 is required.
• The maximum LTV is 80%.
• 12 to 18-month loan terms are available for fix and flip projects.
• The minimum after-repair value for a single-family home is $100,000 and $350,000 for 5+ unit multi-family homes.
• These loans aren’t for owner-occupied properties.

How to Apply

You can create a borrower’s account on the RCN website, enter a few details, and one of RCN’s loan officers will phone you, give you a quote, and continue the application process.

4. BridgeWell Capital

BridgeWell Capital is a hard money lender for real estate investors looking for quick financing. 

They operate across most states in the Midwest and Eastern regions of the U.S., including Florida, Connecticut, Texas, Colorado, and more.

Loan Products

• Fix and flip loans: Real estate investors can borrow up to $2 million to purchase and rehab a property.

• Long-term rental loans: Professional real estate investors who cannot qualify for mortgages can use BridgeWell’s long-term rental loans to purchase investment properties.

• Loans for owner-occupied properties: Investors can use BridgeWell’s loan options to purchase properties they pay to use as their primary residence.

Loan Requirements and Additional Information

• You can qualify for an LTV around 60% to 80%.
• BridgeWell usually funds 100% of the rehab cost.
• You receive 20% of your rehab loan upfront.
• BridgeWell doesn’t charge interest on undrawn construction funds.
• There are no prepayment penalties on short-term loans.
• The maximum commercial loan amount is $2 million.
• Funding is available for residential, retail, mixed-use, and commercial properties.
• Real estate investing experience isn’t required.
• Refinancing options are available.
• Closing costs aren’t listed on their website.

How to Apply

To apply for an investment loan with BridgeWell, you have to complete a questionnaire on their website and a loan officer will reach out to you.

5. Griffin Funding

Griffin Funding is a mortgage and home loan lender based in San Diego. They specialize in providing real estate investors with private loans that can be used to fix-and-flip a property or buy and rent it out to a tenant.

Griffin Funding currently lends in 25 U.S. states and Washington D.C. Some of these states include California, Nevada, Texas, and Hawaii.

Loan Products

• DSCR loans: Instead of being underwritten on a borrower’s income level and debt-to-income ratio, DSCR loans consider the rental property’s ability to pay its debt obligations.

• Asset-based loans: These home loans allow borrowers to use saving accounts, stocks, CDs, and any assets as collateral for a loan.

• Bank statement loans: Self-employed borrowers who don’t earn W2 income can qualify for loans using bank statements instead of pay stubs and proof of employment.

• Conventional mortgages: If investors want to purchase a primary residence and rent out a separate entrance to a tenant, they can use Griffin Funding’s FHA loans, which have lower down payments and interest rates than many investment loans.

• VA loans: These loans are for veteran service personnel and require no downpayment and come with low interest rates.

• Jumbo loans: These are loans that exceed the loan limits set by Fannie Mae and the Federal Housing Finance Agency. Borrowers can qualify for loans up to $20 million.

Loan Requirements and Additional Information

• For DSCR loans, a property must be able to pay off at least 75% of its debt obligations.
• Borrowers can qualify for loans between $100,000 and $20 million.
• For short-term rental loans like Airbnbs, properties must have a 60% occupancy rate.
• Origination fees are between 1% to 3%.
• A minimum FICO score of 580 is required.
• There are prepayment penalties if the loan is paid off within three years.
• The average closing time is 30 days.
• First-time real estate investors are eligible.
• Fixed-rate loans and adjustable-rate loans are available.

How to Apply

You have to fill out the contact form on their website, and a loan officer will contact you within a couple of business days.

Get Started

Use our instant loan pricer to get a quote for your investment property loan.

Related reads:

• 5 Best DSCR Lenders (2024 Comparison)
• DSCR Loan Rates in 2024: 5 Factors That Impact Interest Rates
• DSCR Loan Pros and Cons: A Detailed Guide for Investors