Investor Loan Strategies for the 2026-2027 Phoenix Market

The Phoenix and Scottsdale real estate markets remain top targets for investors. But to scale your portfolio, you need the right financing. Your two primary options are conventional investment property loans and the powerful DSCR loan.

Option 1: The Conventional Investment Loan

This is a standard conventional loan used to buy a non-owner-occupied property. It's a great option, but comes with traditional requirements:

• Income Verification: You must qualify using your personal income (W-2s, tax returns).
• Down Payment: You'll typically need 20-25% down.
• Loan Limits: You are generally limited to 10 financed properties.

Option 2: The DSCR (Debt Service Coverage Ratio) Loan

This is the tool for serious investors. A DSCR loan ignores your personal income entirely. Instead, it qualifies the *property*.

• How it works: If the property's projected rental income covers the mortgage payment (a 1.0 ratio or higher), you're approved.
• No Income Docs: No W-2s, no tax returns needed.
• No Property Limits: You can use DSCR loans to finance an unlimited number of properties.

The 2026-2027 Strategy

For investors just starting out, a conventional loan is a great way to get your first 1-2 properties. But to truly scale your portfolio in Arizona, the DSCR loan is the clear winner. It allows you to leverage the cash flow of your properties to acquire more, without being limited by your personal income.