One Chart Comparing EVERY Investment Property Loan Type
Check out this quick-glance comparison table featuring basic qualification requirements, advantages, and considerations of 10 common investment loan types.
The types of loans available to use for investment properties are numerous. But for any given borrower, there will be one or two types that are most ideal. Each loan type comes with its own set of terms, rates, eligibility requirements, and much more. The table below gives you a quick glance at each of the core characteristics of loan types that can be used for investment properties.
Have more questions? Great! Please reach out to Capstone Capital Partners. We’re happy to guide in the right direction — free of charge — no matter if our offerings are right for you or not.
Download the Excel table of this investment loan type comparison chart.
| Loan Type | Used For | Lender Type | Interest Rate Range | Typical Speed to Close | Minimum Credit Score | LTV (or ARV) Ratio | Down Payment Requirement | Typical Loan Length | Considerations | Disadvantages |
|---|---|---|---|---|---|---|---|---|---|---|
| Conventional Loan | Residential | Traditional Banks | Low to Middle | Moderate | 620 | Up to 80% | 15-20% | 15-30 years | Suitable for those with good credit and stable income. | Requires good credit, longer approval process. |
| Hard Money Loan | Both | Private Lenders | High | Very Fast | N/A | 70% (ARV) | 10% | 1-3 years | Asset-based with fast approval, suitable for short-term investments. | Higher interest rates and shorter terms. |
| Commercial Loan | Commercial | Commercial Banks | Middle to High | Slow | 700 | Up to 75% | 25% | 5-20 years | Best for established businesses looking for long-term financing. | Requires good credit and extensive documentation. |
| Portfolio Loan | Both | Banks and Credit Unions | Middle | Moderate | 680 | Up to 80% | 20% | Varies | Suitable for investors with multiple properties and good credit. | Higher rates and fees compared to traditional loans. |
| Blanket Mortgage | Both | Banks and Credit Unions | Middle to High | Moderate | 680 | Up to 75% | 25% | Varies | Ideal for investors financing multiple properties under one loan. | Complex and may have higher fees and rates. |
| SBA Loan | Commercial | Government-backed | Low to Middle | Slow | 680 | Up to 90% | 10% | 10-25 years | Designed for small businesses, offering various uses and benefits. | Lengthy application process and strict eligibility criteria. |
| Jumbo Loan | Residential | Traditional Banks | Middle | Moderate | 700 | Up to 80% | 20% | 15-30 years | Suitable for financing high-value properties, requires good credit. | Higher interest rates and stricter qualifications. |
| Owner Financing | Both | Individual Sellers | Negotiable | Fast | Varies | Varies | Varies | Varies | Flexible terms based on agreement between buyer and seller. | Risk of unfavorable terms and potential legal issues. |
| Angel Investor | Both | Private Investors | Varies | Fast | N/A | N/A | N/A | Varies | Typically requires equity in the property and/or a share of profits. | May require giving up a portion of ownership or profits. |
| Family Member | Both | Relatives | Varies | Very Fast | N/A | Varies | Varies | Varies | Terms based on personal agreement, often flexible and informal. | Potential strain on personal relationships and lack of formal agreement. |
Hard money from Capstone Capital Partners
Capstone Capital Partners provides asset-based hard money loans for investors. Hard money is ideal for real estate investors looking for quick financing without the stringent qualification processes of traditional lenders. Hard money is particularly beneficial for fix-and-flip projects, short-term investments, and situations where fast closing times are essential. Many of our borrowers are well qualified real estate investors, but simply lack a credit score. Others need to close as fast as possible in order to secure a property
Here are other resources you may find useful:
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