Investment Property Mortgage Calculator
Calculate your investment property mortgage rate, monthly payment, and see exactly how credit score affects your rate premium. Compare conventional, DSCR, and portfolio loan options.
Compare the 4 main loan programs for investment properties. Each has different qualification methods, rates, and requirements.
| Portfolio Size | Financing Available | Key Requirements |
|---|---|---|
| 1-4 properties | Conventional, FHA (primary), VA (primary) | Standard DTI, 6mo reserves per investment property |
| 5-10 properties | Fannie Mae/Freddie Mac only | 25% down, 720+ credit, 6mo reserves for ALL financed properties |
| 10+ properties | Portfolio, DSCR, commercial lenders only | Asset-based qualifying, higher rates, relationship banking |
How to Use This Investment Property Mortgage Calculator
This calculator covers investment property financing specifically — not second homes, not primary residences. It accounts for the higher down payment requirements, rate premiums, DSCR qualification, and multi-property reserve rules that make investment property loans different.
Quick Tab
Enter your Property Price, Down Payment % (minimum 15%), Credit Score, and Loan Program. Enter your primary home rate as a benchmark — the calculator adds the precise rate premium for your credit tier and LTV, and shows your estimated investment rate, payment, and DSCR ratio.
Advanced Tab
The Loan Programs tab compares conventional, DSCR, portfolio, and commercial financing side-by-side. The Rate Premium tab shows exactly how much each credit score tier costs in additional monthly payment and total interest. The Qualifying tab explains conventional DTI vs DSCR approaches and how rental income is counted.
Pro Tab
The Portfolio Scaling tab shows what happens when you cross the 4, 5, and 10 property thresholds. The Entity Structure tab compares personal name vs LLC financing. The Multi-Property Reserves tab calculates total capital you must have in liquid savings to satisfy Fannie Mae reserve requirements across your portfolio.
The Formula: DSCR Ratio
DSCR >= 1.25 = Strong qualify for DSCR loan
DSCR = 1.00-1.24 = Marginal — some lenders accept
DSCR < 1.00 = Property does not support its own debt
Example:
Monthly rent: $2,500
Monthly mortgage (PITIA): $2,000
DSCR: 2,500 / 2,000 = 1.25x — PASS
For conventional qualification, rental income is counted at 75% to offset DTI: $2,500 x 0.75 = $1,875 credited against the $2,000 payment, leaving a $125/mo net DTI burden. A property generating only $1,600/mo rent would add $800/mo to your DTI under conventional rules — potentially disqualifying you.
Example: Building a 3-Property Portfolio
Marcus Builds a Rental Portfolio Over 4 Years
Primary home rate at time of purchase: 6.75%. Credit score: 745. Building from 1 to 3 investment properties.
| Property 1 (20% down, 740 credit) | |
| Purchase price | $280,000 |
| Loan amount | $224,000 |
| Rate (6.75% + 1.125% = 7.875%) | 7.875% |
| Monthly P&I | $1,624 |
| Monthly rent | $2,100 |
| DSCR | 1.29x — strong |
| Reserves required | $9,744 (6 months) |
| Property 2 (adding at 760+ credit) | |
| Rate premium reduced | 7.625% (better credit) |
| Total reserves (both properties) | $19,500 |
| Property 3 (now 5-10 range) | |
| Min down now 25% | $87,500 on $350K property |
| Total reserves (all 3) | $29,244 |
By property 3, Marcus needs $87,500 in down payment plus $29,244 in reserves — over $116,000 total liquid capital — to qualify at Fannie Mae standards. This is why experienced investors use DSCR or portfolio lenders beyond 4 properties and focus intensely on credit score optimization.