Conventional and FHA Investment Loans

Flexible options for buying rental properties and building wealth with long-term financing.

What Are Conventional and FHA Investment Loans?

If you’re looking to invest in real estate for the long haul — whether it’s a single-family rental or a small multifamily — Conventional and FHA loans are two tried-and-true ways to finance it.

Conventional Investment Loan

Conventional loans are traditional mortgage loans backed by Fannie Mae or Freddie Mac. They’re a solid option for buying rental properties when you have good credit, stable income, and want competitive rates.

FHA Investment Loan

FHA loans are government-backed loans insured by the Federal Housing Administration. While FHA loans are primarily designed for owner-occupied homes, they can also help you buy a 2-4 unit property if you plan to live in one unit and rent out the others.

Conventional Requirements

  • Minimum 15–20 percent down payment for investment properties

  • Good credit score (typically 680 and above for best rates)

  • Proof of stable income and employment

  • Sufficient reserves (many lenders want to see enough savings to cover a few months of payments)

FHA Requirements

  • 3.5 percent down payment if your credit score is 580 or higher

  • Must occupy one unit for at least one year (required for multi-unit purchases)

  • Proof of income and employment

  • Property must meet FHA condition standards

Frequently Asked Questions

How much down payment will I need for a Conventional rental loan?

Most Conventional investment loans require at least 15 to 20 percent down for a single-family rental. Multi-units may need 25 percent down.

What credit score do I need?

For Conventional, most lenders look for a score of 680 or higher for the best rates. For FHA, you can qualify with as low as 580 if you meet other requirements.

How fast can I close?

The national average is about 30 to 45 days. At MPS Mortgage LLC, we push to close Conventional and FHA loans as quickly as possible — often faster than big banks because we handle the details upfront and keep you updated.