Types of Investment Property Loans Explained

By Commercial Capital Investor Group · October 2026 · 3 min read

Shopping for an investment property loan can feel like reading a menu in another language: DSCR, bridge, hard money, cash-out, interest-only. The easiest way to make sense of it is to sort loans three ways: by the property, by the purpose, and by the rate structure.

1. Loans by property type

Lenders group properties into categories because each one carries different risk. Here is how CCIG’s programs break down:

1–4 unit rentals: single-family homes, two- to four-families (including triple-deckers), condos, non-warrantable condos, and short-term rentals. Up to 80% loan-to-value. Investment properties only.
Multi-family: apartment buildings with five or more units. Up to 75% loan-to-value, and the building can be owner-occupied.
Mixed-use: buildings with two or more uses, like retail below and apartments above. Up to 75% loan-to-value.
Commercial: office, retail, warehouse, self-storage, and auto-service properties. Up to 75% loan-to-value.

The line between 1–4 units and 5+ units matters. A four-unit building and a five-unit building can look similar from the street, but most lenders treat them as completely different loans.

2. Loans by purpose

Purchase: buying a property.
Rate-and-term refinance: replacing your current loan, usually to get a better rate or term.
Cash-out refinance: borrowing against equity you already have, often to fund your next purchase. How cash-out refinancing works.
Fix ‘n Flip: short-term financing for renovating and reselling a property, structured around the after-repair value.

3. Loans by rate structure

Structure	How it works	Good fit when
30-year fixed	Same rate and payment for the life of the loan	You plan to hold long term and want a predictable payment
Adjustable	Rate can change after an initial period	You expect to sell or refinance sooner
Interest-only	Pay only interest for a set period, lowering the payment	Cash flow matters most right now
Balloon	Lower payments, then the full balance comes due early	Usually short-term deals; CCIG loans have no balloon

What about DSCR, hard money, and bridge loans?

These names describe how a lender qualifies you or how long the loan lasts:

DSCR loans qualify you based on whether the property’s rent covers the payment. CCIG doesn’t require a debt service ratio at all.
Hard money and bridge loans are short-term loans, often one to three years, usually with higher rates and a balloon at the end.
Asset-based loans, like CCIG’s, focus on the property’s value and equity instead of your tax returns, while still offering long-term, fully amortized terms.

How to pick

Start with the property, then the purpose, then the structure. If you’re weighing options, our guide on choosing between investment property loans walks through it step by step.

Have a deal in mind?

Tell us about the property and a CCIG loan specialist will walk you through your options.

Apply Now Call 978-478-0668

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