A Guide to Real Estate Investor Financing in Phoenix & Scottsdale

Published on October 8, 2025

The Phoenix and Scottsdale real estate markets offer incredible opportunities for savvy investors. Whether you're buying your first rental property or expanding your portfolio, understanding your financing options is key. This guide covers the most popular loan products for investors in the Valley.

DSCR (Debt Service Coverage Ratio) Loans

This is the most popular loan for experienced investors. A DSCR loan qualifies you based on the investment property's cash flow, not your personal income. If the projected rent covers the mortgage payment, you can get approved. This is ideal for self-employed investors or those with complex tax returns.

Conventional Investment Property Loans

For investors buying their first few properties, a conventional loan is a great option. These typically require a down payment of 20-25% and rely on your personal income and credit score for qualification. They often offer very competitive interest rates.

Fix-and-Flip Loans

Also known as hard money or bridge loans, these are short-term loans designed for investors who plan to renovate and sell a property quickly. They are based on the 'after repair value' (ARV) of the home and provide the capital needed for both the purchase and the renovation.

Bank Statement Loans

An excellent option for self-employed investors, these loans use 12 or 24 months of personal or business bank statements to verify income instead of traditional tax returns. This provides a path to financing for successful business owners whose tax documents may not reflect their true cash flow.

Building Your Portfolio

The right loan strategy depends on your goals. Are you looking for long-term cash flow from rental properties or short-term gains from flipping? As experts in investor financing, we can help you craft a strategy that aligns with your financial objectives and the unique opportunities in the Phoenix and Scottsdale markets.