Conventional Investment Property Loans

Agency path

Investment property is a recognized conventional occupancy type; it is not automatically Non-QM.

Borrower qualification

Income, assets, liabilities, credit and rental income are evaluated under the applicable agency and AUS/manual framework.

Pricing and leverage

Investment-property pricing and maximum leverage can differ from primary-residence financing and can vary by transaction and property type.

Overlays

A lender can be more restrictive than Fannie Mae or Freddie Mac.

Current agency guardrails

Fannie DU second-home/investment transactions currently allow up to 10 financed properties. Freddie says investment-property mortgages must receive LPA Accept; manual underwriting is not permitted. Both apply investment-specific pricing/underwriting requirements.

Documents I would gather before calculating rental income

Current mortgage statements/PITIA for every retained property; Schedule E and applicable tax returns; leases; purchase closing statements and acquisition dates; appraisals or rent schedules when applicable; proof of current housing payments; insurance/HOA information; entity documents if an LLC is involved; and evidence of reserves. The correct calculation depends on what the property is and when/how it was acquired.

Common investor-loan mistakes

Calling 75% of rent 'income' without subtracting PITIA; using a lease when current agency policy requires another rent source; adding positive rental income when it is only allowed to offset housing expense; confusing cap rate with DSCR; applying a private investor's seasoning rule to Fannie/Freddie; and assuming an LLC-owned mortgage is counted the same as a personally obligated mortgage.

Primary sources to verify

• Fannie Mae — General Rental Income
• Fannie Mae — Investment Property Purchased Within 45 Days
• Fannie Mae — Multiple Financed Properties
• Freddie Mac — Investment Property Mortgages

Last reviewed September 15, 2026.