The type of loan you choose for an investment property will depend on several factors, including the type of property you are buying, your financial situation, and your investment goals. Here are some of the most common types of loans used for investment properties: Conventional mortgage: This is a traditional mortgage loan that is backed by either Fannie Mae or Freddie Mac. Conventional mortgages are available for primary residences, second homes, and investment properties. FHA loan: The Federal Housing Administration (FHA) offers loans with lower down payment requirements and more lenient credit standards, making them a popular option for investment properties. Portfolio loan: This type of loan is held by a lender and not sold on the secondary market, which allows for more flexible underwriting and loan terms. Portfolio loans are often used for investment properties that don't meet the requirements for conventional or FHA loans. Hard money loan: This type of loan is typically used for short-term real estate investments and is based on the value of the property rather than the borrower's credit history. Hard money loans typically have higher interest rates and shorter loan terms than other types of loans. Home equity loan: If you already own a primary residence, you can use a home equity loan to finance an investment property. This type of loan allows you to borrow against the equity you have built up in your primary residence. It's important to consider all the options available and to work with a lender or financial advisor to determine the best loan option for your investment property. Additionally, you should carefully consider the terms and conditions of the loan, including interest rates, loan fees, and repayment terms, to make sure that the loan aligns with your investment goals and financial situation.