Who this article is for
This article is for:
Borrowers planning to purchase or refinance a rental property
Homeowners converting an existing property to a rental
Anyone comparing eligibility for second homes vs investment properties
How investment property loans work with Nestwise
Nestwise offers conventional mortgages for qualifying investment properties.
These loans follow Fannie Mae and Freddie Mac guidelines, which include stricter requirements due to the higher risk associated with non-owner-occupied homes.
An investment property is defined as a home you do not live in and primarily use to generate rental income.
Types of investment properties Nestwise can finance
Nestwise can consider:
Single-family rental homes
One-unit condos used as rentals
Properties that you do not occupy
Properties must meet:
Conventional appraisal standards
Standard property condition requirements
Local occupancy and zoning rules
Nestwise does not finance:
Multi-unit investment properties (2–4 units)
Short-term rental properties with mandatory rental pools
Properties needing major repairs or renovation
Construction or non-QM rental products
Key requirements for investment property financing
Investment properties have stricter eligibility guidelines than primary or second homes.
Typical requirements include:
Minimum 620 credit score
Higher down payments (often 15–20%, depending on profile)
Strong debt-to-income ratios
Documented rental income (if applicable)
Additional cash reserves (sometimes required)
A qualifying appraisal that confirms rental market value
Nestwise will review all your income, assets, and credit to confirm eligibility.
How rental income is treated
Rental income may help you qualify if documentation meets agency rules.
This may include:
A lease agreement (for existing rentals)
Market rent estimates from the appraisal
Schedule E income (for existing rentals on tax returns)
Income that cannot be documented cannot be used for qualification.
How investment property loans differ from second homes
Investment properties:
Are purchased to generate income
Cannot be classified as personal-use second homes
Have stricter down-payment and credit requirements
Require stronger financial reserves
Second homes:
Are used primarily for personal stays
May allow occasional short-term rental
Have lower down-payment minimums
If you’re unsure which category your property fits, Nestwise can help you determine the correct classification.
Does Nestmatch™ apply to investment properties?
If you refinance an eligible investment property into a Nestmatch-enabled loan after launch, you may qualify for rewards — depending on final program rules and eligibility.
Borrowers who close before launch may receive Premier Access™, giving them early access to refinance options when Nestmatch becomes available.