Updated Rates as of August 2026
Choosing the wrong loan is the most expensive mistake in a deal — a bank mortgage that can’t close on an auction property, or a hard money loan carried nine months past the exit. This hub maps every major investment property loan to the deal it’s built for, and links to a side-by-side breakdown for each decision.
Not sure where to start? Tell us the deal and we’ll point you to the right structure — or browse the full lender & loan-type compare hub.
Quick pick — start with your goal
| Your goal | Loan to compare first | Deep-dive comparison |
|---|---|---|
| Flip a distressed property | Hard money / bridge | Fix-and-flip vs bridge loan (2026) · Hard money vs conventional |
| Buy & hold a rental | DSCR | DSCR vs hard money (2026) · DSCR vs hard money vs conventional |
| Build ground-up | Construction | Construction vs. bridge · Ground-up vs. fix & flip |
| Pull cash out of equity | Cash-out refi / DSCR / HELOC | Investment property HELOC · No appraisal HELOC · Cash-out refi vs. HELOC · DSCR loan vs. HELOC |
| Owner-occupied commercial | SBA vs. bridge | SBA vs. conventional vs. bridge · SBA 504 vs. 7(a) |
Short-term & acquisition financing
When you need to close fast or the property won’t qualify for a bank loan, the decision is between the short-term, asset-based options:
- DSCR vs hard money for investors (2026) — flip/BRRRR vs hold
- Fix-and-flip loan vs bridge loan (2026) — rehab draws vs light hold
- Hard money vs conventional investment property (2026) — speed vs bank rate
- Compare lenders & loan types hub — Kiavi vs Lima One, Jaken Finance Group vs national, and more
- DSCR vs. hard money vs. conventional — the master three-way framework
- Hard money vs. traditional loans — rates, speed, and risk trade-offs
- Bridge loans vs. hard money — when each label actually applies
- Bridge loan vs. DSCR loan — short-term hold vs. permanent refinance
- Hard money vs. private money — institutional vs. relationship capital
- Hard money vs. cash offer — leverage vs. all-cash speed
- Subject-to vs. seller financing vs. hard money — creative acquisition paths
Long-term rental (DSCR) financing
Once a property is stabilized, the question shifts to how you structure the permanent rental loan:
- DSCR vs. conventional for BRRRR — the refinance-stage decision
- DSCR vs. conventional for Airbnb / STR — short-term-rental income
- DSCR vs. bank statement loan — two self-employed-friendly paths
- No-ratio vs. standard DSCR — when coverage falls short
- Fixed vs. ARM DSCR — rate structure over the hold
- Interest-only vs. amortizing DSCR — cash flow vs. paydown
- Portfolio vs. individual DSCR loans — scaling past a handful of doors
- DSCR loans for apartments — no unit maximum on multifamily DSCR
- Multifamily DSCR vs. commercial loan — the 5+ unit line
- PadSplit DSCR loans — room-rental income on DSCR files
- Refinance subto into DSCR — clearing subject-to debt at stabilization
Construction, cash-out & commercial
- Construction loan vs. bridge loan
- Ground-up construction vs. fix & flip
- Finance fire-damaged property — distressed acquisition underwriting
- Investment property HELOC
- No appraisal HELOC for investment property
- Cash-out refinance vs. HELOC
- Commercial bridge loan vs. SBA loan
- SBA vs. conventional vs. bridge (owner-occupied)
- SBA 504 vs. 7(a)
Loan structure & entity
The same loan behaves differently depending on how it’s structured — decide these before you sign a term sheet:
- Recourse vs. non-recourse — personal-guarantee exposure
- LLC vs. personal name — how you take title
Comparing lenders, not just loan types
Once you know the loan, the next decision is who funds it. Our lender-comparison research covers national platforms and focus-market fit:
- Compare lenders & loan types hub — Kiavi vs Lima One, DSCR vs hard money, Jaken Finance Group vs national
- Best hard money lenders (2026) — methodology and shortlist
- CoreVest vs Jaken Finance Group DSCR (2026) · RCN vs Jaken Finance Group (2026) — portfolio scale vs focus-market BRRRR
Run the same deal file through two lenders before you default to a national brand — LTC and draw speed often matter more than a quarter-point on rate.
What the October 2026 survey rate actually measures
Freddie Mac’s Primary Mortgage Market Survey put the average 30-year fixed at 7.28% as of October 1, 2026. A week earlier the same series was 7.03%. A year earlier it was 6.34%. The 15-year fixed averaged 6.60% on that October 1 print, up from 6.42% the week before and from 5.55% a year earlier.
Those prints are not a quote for a rental or a flip. Freddie Mac says the survey profile is good or excellent credit, 20% down, and a purchase of an owner-occupied one-unit house. Fees and points are no longer published in the survey. An investment loan is a different product, with a different borrower and a different collateral story.
Jaken Finance Group prices DSCR rentals from 5.75% to 10.5%. Fix-and-flip and bridge loans price from 8.99% to 13.5%. A DSCR rate can print under the owner-occupied survey and still be the wrong tool if the house is vacant and mid-rehab. A bridge rate can print well above the survey and still be the only loan that closes on an auction calendar.
Illustration: one address, two loan jobs
Example only. A stabilized rental is under contract at $380,000 with market rent of $2,800 a month. Taxes and insurance in this illustration are an assumption of $550 a month, not a quote from a carrier.
A purchase DSCR at 80% of price is a $304,000 loan. That sits inside the program cap of 85% on a purchase, 80% on cash-out, and 85% on a rate-and-term refinance, in select markets for qualified borrowers. At an example note rate of 7.50%, fully amortizing over 30 years, principal and interest is about $2,126 a month. Add the assumed $550, and the housing payment is about $2,676. Coverage is about 1.05 ($2,800 divided by $2,676). A complete DSCR file closes in about 14 business days.
Now treat the same future value as a renovation, not a finished rental. Contract price $250,000. Rehab $60,000. All-in cost $310,000. After-repair value $380,000.
| Test | Result |
|---|---|
| Up to 100% of cost | $310,000 |
| 75% of after-repair value | $285,000 |
| Loan funded (the lower figure) | $285,000 |
| Cash the sponsor still brings | $25,000 |
Interest-only at an example 11.25%, inside 8.99%–13.5%, is about $2,672 a month. Six months of that carry is about $16,030 if interest is paid from cash, not reserved in the note. A fix-and-flip or bridge file in this shape closes in 7–10 business days once the scope and the comps are in. Terms are 6–12 months on a flip and 12–24 months on a bridge.
Refinance the finished house with a cash-out DSCR at 80% of the $380,000 value and the new loan is $304,000. Payoff of the $285,000 bridge leaves about $19,000 before the refinance’s own costs. The sponsor put in $25,000 at the start, so this illustration does not return every dollar. The gap is the point. Matching 75% of after-repair value on the way in to 80% cash-out on the way out can still leave cash in the deal. Model it on the DSCR calculator and the fix and flip calculator before you raise the offer.
A third path, a bank investment mortgage, wants tax returns or W-2 income and a house a retail lender will accept. Use it when the collateral is clean and the calendar is loose. Do not use it to win a courthouse step or a house with no kitchen.
Papers and clocks, side by side
| Job | Loan | Clock after a complete file | What usually decides the file |
|---|---|---|---|
| Buy and renovate, then sell | Fix and flip | 7–10 business days | Scope, after-repair value, and the exit sale |
| Hold through lease-up or a delayed sale | Bridge | 7–10 business days | Purchase leverage up to 90%, and a written exit |
| Keep a leased rental | DSCR | About 14 business days | Rent versus principal, interest, taxes, insurance, and any HOA |
| Pull equity and keep the first mortgage | Second-lien DSCR | About 14 business days | Combined loan-to-value up to 80%, combined coverage above 1.0, loan size $125,000–$1 million, 640 credit score |
| Revolver on a rental you already own | Investment-property HELOC | As few as 5 business days after the notary | Non-owner-occupied only, 680 credit score, quoted per file |
Second-lien DSCR is not available as a substitute for a first-lien flip. The HELOC is not a DSCR loan. It is underwritten with a debt-to-income test, up to 50% on one or two units and 45% on three or four units. A second-lien HELOC is not offered in Texas or New York. Read the HELOC terms before you compare a line of credit to a cash-out refinance.
When the occupant is a business, not a tenant
SBA 7(a) is the agency’s main guarantee program for small firms. The published uses include buying, refinancing, or improving real estate and buildings, plus working capital, equipment, and a change of ownership. The maximum 7(a) loan is $5 million. Eligibility turns on how the firm earns its income, its credit history, and where it operates.
SBA 504 is long-term, fixed-rate financing for major fixed assets that support growth and jobs. A certified development company originates it with a senior lender. The maximum 504 loan is $5.5 million. The business must be a for-profit operating company in the United States and small under SBA size rules.
Those programs belong in the comparison when an operating company will use the building. They are a poor fit for a vacant flip or a pure rental held in an entity that does not run a trade from the site. Jaken Finance Group residential loans are for non-owner-occupied investment property. If you will live in the house, this menu is the wrong shelf. If your company will occupy a commercial building, start with the owner-occupied comparison and the SBA pages above.
Five questions that pick the column
Ask whether you will sell, refinance, or keep the loan for years. Ask whether the house is livable and leased, or whether the kitchen is still on the truck. Ask whether the rent covers the full housing payment at the leverage you want, or only at a smaller loan. Ask whether you are the occupant, or whether the occupant is a tenant or a business. Ask what date the contract requires, in business days.
If the exit is a sale inside a year, start with fix-and-flip or bridge. If the lease is already signed, start with DSCR. If you only need a line behind equity you already have, start with the HELOC rules before you refinance the first mortgage away.
The one rule behind every comparison
Match the loan’s term to your exit. Short-term, asset-based debt (hard money, bridge) is for deals with a defined 6–18 month exit — a flip sale or a refinance. Long-term debt (DSCR, conventional) is for stabilized holds with income to document. Most investor losses come from a mismatch: carrying short-term rates on a long-term hold, or trying to force a stabilized-income loan onto a property that isn’t ready. When you know your exit, the right column in every table above picks itself.
Ready to structure a specific deal? Submit your scenario or request a callback — we’ll tell you which loan fits and quote it.