Loans for investment properties
Lenders treat a rental property as riskier than a home you live in, so expect a larger down payment, a higher rate and more cash reserves. If you live in one unit of a two to four family home, owner occupied programs, including FHA, may apply.
Your options
- Conventional investment loans backed by Fannie Mae or Freddie Mac, with stricter limits than for a home you live in.
- Buying a two to four family home and living in one unit, which can open owner occupied programs. Loan limits for two to four units are in our loan limits table.
- DSCR loans: non-QM loans some lenders offer that qualify you mainly on the property's rent compared with its payment.
Before you buy
- Check local rent rules. Many New York City apartments are rent stabilized, and some New Jersey towns have rent control ordinances.
- Budget for vacancies, repairs, insurance and property taxes, not just the mortgage.
- Ask how the lender counts expected rent, often a portion of the lease or appraiser's rent estimate.
2026 loan limits by county
Official limits for loans made in 2026. Conforming limits are from FHFA. FHA limits are from HUD.
| County or borough | State | Conforming limit | FHA limit |
|---|---|---|---|
| Bergen County | New Jersey | $1,209,750 | $1,249,125 |
| Hudson County | New Jersey | $1,209,750 | $1,249,125 |
| Essex County | New Jersey | $1,209,750 | $1,249,125 |
| Passaic County | New Jersey | $1,209,750 | $1,249,125 |
| Union County | New Jersey | $1,209,750 | $1,249,125 |
| Morris County | New Jersey | $1,209,750 | $1,249,125 |
| Middlesex County | New Jersey | $1,209,750 | $1,249,125 |
| Mercer County | New Jersey | $832,750 | $541,287 |
| Queens | New York | $1,209,750 | $1,249,125 |
| Brooklyn | New York | $1,209,750 | $1,249,125 |
| Manhattan | New York | $1,209,750 | $1,249,125 |
| Staten Island | New York | $1,209,750 | $1,249,125 |
| Westchester County | New York | $1,209,750 | $1,249,125 |
| Nassau County | New York | $1,209,750 | $1,249,125 |
One unit homes shown. Two to four unit limits are in the official files linked below. A loan above the conforming limit is a jumbo loan. Checked against the official files on 2026-11-01.
Questions people ask
- Can I use FHA for a rental?
- Not for a property you will not live in. FHA can be used for a two to four family home if you live in one of the units.
- What is a DSCR loan?
- A debt service coverage ratio loan compares the property's rent with its monthly payment. It is a non-QM product, so terms vary by lender.
- Can I use rent from the other units to qualify?
- Often yes, with a lease or an appraiser's rent estimate. Each program has its own rules.
Official sources
- FHFA, Conforming Loan Limit Values ↗
- HUD, FHA Mortgage Limits ↗
- CFPB, Understand the different kinds of loans ↗
Facts checked 2026-11-01. General information, not financial, legal or tax advice. We are not a lender.