A $500,000 rental loan supports a purchase of roughly $625,000 to $667,000 at 75–80% LTV. Whether you get it usually depends on one number: the rent compared with the payment.
In short: To get a $500,000 investment property loan, most investors use a DSCR loan, which qualifies on the property's rent instead of personal income. At 80% LTV, $500,000 finances a purchase of $625,000; at 75% LTV, about $666,667. At a sample 7.0% rate on a 30-year fixed, principal and interest is about $3,327 a month, so with taxes and insurance the property usually needs roughly $4,100 to $4,300 in monthly rent to reach a 1.0x ratio. You will also need a 620 or higher credit score, the down payment, closing costs and reserves.
The table works backward from a $500,000 loan. It shows the purchase price at each LTV, the down payment, and the monthly rent the property needs for about a 1.0x DSCR. The sample rate is 7.0% on a 30-year fixed, and taxes plus insurance are an illustrative 1.5% of the price per year. Your actual tax bill, insurance quote and rate will differ.
Notice that the rent needed barely changes across the rows. Principal and interest depend on the loan amount, not the price, so only the tax and insurance line moves. A $500,000 loan needs about the same rent whether you put 20% or 35% down.
Use the table as a screen, not a final answer. If a listing's realistic rent sits well below the rent-needed column, the property will probably need a larger down payment, a lower price, or a program that allows a ratio below 1.0x.
| LTV | Purchase price | Down payment | P&I at sample 7.0% | Illustrative taxes + insurance | Rent needed for about 1.0x |
|---|---|---|---|---|---|
| 65% | $769,231 | $269,231 | $3,327 | $962 | $4,288 |
| 70% | $714,286 | $214,286 | $3,327 | $893 | $4,219 |
| 75% | $666,667 | $166,667 | $3,327 | $833 | $4,160 |
| 80% | $625,000 | $125,000 | $3,327 | $781 | $4,108 |
A DSCR rental loan is the most common fit. It allows up to 80% LTV on a purchase and up to 75% on a cash-out refinance, needs no W-2s or tax returns, and lets you close in an LLC. Rates start from 6.125% for well-qualified borrowers.
If the property needs work before it can rent, a fix and flip or bridge loan usually comes first, followed by a DSCR refinance once it is leased. If you are buying five or more rentals at once, a blanket portfolio loan may cover them together. For a home you plan to live in, you would need a consumer mortgage; we finance investment property only.
Most investors at this size close in an LLC. If you already own the property and want to borrow $500,000 against it, a cash-out refinance needs a value of at least about $666,667, since cash-out is capped at 75% LTV.
A $500,000 DSCR file is reviewed on a short list of items. None are exotic, but each one can change the loan amount or the rate.
Most of these are settled early. The rent schedule from the appraisal is usually the last big number to come in, and it is the one most likely to change the loan, so build a little room into your rent estimate.
This example is illustrative and not a quote. An investor buys a single-family rental for $625,000 with 20% down. The loan is $500,000. At a sample rate of 7.0% on a 30-year fixed, principal and interest is about $3,327. Taxes and insurance add about $800, so the full payment is about $4,127.
The appraiser's rent schedule supports $4,400 a month. The DSCR is $4,400 divided by $4,127, or about 1.07x. That clears the 1.0x standard minimum with a small cushion.
Cash to close is the $125,000 down payment plus sample closing costs of $15,000, or $140,000. If the program in this example asked for six months of reserves, the investor would also need about $24,759 in the bank after closing. The total liquid funds needed would be about $164,759.
Because the loan amount is fixed at $500,000 here, the LTV decides the price you can pay and the cash you bring. At 80% you buy a $625,000 property with $125,000 down. At 75% you buy a $666,667 property with $166,667 down. The payment is the same, so the ratio depends on whether the more expensive property earns more rent.
The other way to use the same budget is to keep the $625,000 price and borrow less. At 75% LTV on $625,000, the loan is $468,750 and principal and interest drops to about $3,119 at the sample 7.0% rate, about $208 a month less. That is often the cleaner fix when the rent is tight. Lower leverage can also improve pricing on some programs.
Say the rent schedule in the example came back at $3,900 instead. The ratio would be about 0.95x, below 1.0x. The investor has three practical moves.
First, put more down. At 70% LTV on the same $625,000 price, the loan drops to $437,500 and principal and interest to about $2,911, bringing the full payment near $3,711 and the ratio to about 1.05x. Second, look for a better rate through a higher credit score or lower leverage. Third, ask about programs that allow a DSCR below 1.0x, which usually come with lower leverage.
In many metro areas, a $625,000 to $700,000 price buys a newer single-family home in a good school district, a well-kept duplex, or a townhome with association dues. In lower-cost markets it can buy a fourplex or a small group of homes.
Rent-to-price matters more than the property type. A duplex earning $4,600 a month will usually finance more easily than a single-family home earning $3,800 at the same price. If you are choosing between two properties, run both through a DSCR calculator before you decide.
Association dues count in the payment, so a townhome with a $400 monthly due needs $400 more rent than a similar house without one. Condo projects may also need a questionnaire before closing.
The down payment is the largest piece, but not the only one. Budget for closing costs, which include lender and third-party costs such as the appraisal, title, insurance and recording. Prepaid items like the first year of insurance and tax escrows are collected at closing too.
Reserves come after all of that. They are not spent; they stay in your account. Lenders count checking, savings and investment account balances, and some programs count part of retirement accounts. Large recent deposits usually need a paper trail.
A practical approach is to total the down payment, sample closing costs and the reserve estimate before you make an offer, then compare that figure with the funds you can document today.
The fastest $500,000 loans follow a simple order. Know your numbers before the offer, then move documents early.
Gather these before you apply: the purchase contract, a lease or market rent estimate, the tax bill, an insurance quote, two months of asset statements, your LLC formation documents and operating agreement, and a schedule of any other rentals you own. Credit is pulled during the process; a 620 score is the minimum, and higher scores price better.
If you already own rentals, include a schedule with each address, balance, payment and rent. If this is your first rental, say so; first-time investors can qualify on DSCR programs, and the financing team will tell you if any program asks for more reserves in that case.
At 80% LTV, $125,000 down on a $625,000 purchase. At 75% LTV, about $166,667 down on a $666,667 purchase. Closing costs and reserves are additional.
At a sample 7.0% rate on a 30-year fixed, principal and interest is about $3,327. Taxes, insurance and any association dues come on top. Your actual rate depends on credit, leverage and the property.
Enough to cover the full payment for about a 1.0x ratio. Using the sample figures on this page, that is roughly $4,100 to $4,300 a month, depending on taxes and insurance.
Yes. DSCR loans qualify on the property's rent, so no W-2s or tax returns are needed.
No. Our DSCR loans start at $150,000 with no stated maximum, and $500,000 is a common size. Loans well above it are reviewed case by case.
620 is the minimum. Higher scores usually get better pricing and sometimes more leverage.
Usually not as a DSCR loan, since it qualifies on rent. A fix and flip or bridge loan typically funds the purchase and work, then a DSCR loan refinances it once leased.
No. LendingStreet offers business-purpose loans on non-owner-occupied investment property only.
It depends mostly on the appraisal and how quickly documents come in. A complete file at the start is the biggest factor you control.
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