Does Grafton Funding offer DSCR loans for rental properties?

Yes — DSCR (Debt Service Coverage Ratio) loans are our most popular product. We lend on single-family rentals, 2–4 unit properties, short-term rentals (like Airbnb and VRBO), and small multifamily up to 10 units. We qualify the property on its rental income rather than your personal income or tax returns. Minimum DSCR is typically 1.0x, and we lend in TX, FL, GA, NC, SC, and other states.

Does Grafton Funding do fix and flip loans or bridge loans?

Yes. We provide fix and flip loans and bridge loans for non-owner occupied investment properties. Our programs cover the purchase price plus rehab costs, with fast closings. Loan terms are short-term (typically 12–18 months) and are designed around the investor's exit strategy — either sale or refinance.

Can I get a DSCR loan for an Airbnb or short-term rental property?

Yes — we specialize in short-term rental (STR) financing. We use either the property's actual Airbnb or VRBO income history or a market-rate STR income estimate to qualify the loan. You don't need W-2s or tax returns.

Does Grafton Funding offer new construction loans for investment properties?

Yes. We offer new construction loans for non-owner occupied residential investment properties, including spec builds, ground-up construction, and lot + build projects. These are short-term loans that fund in draws as construction progresses.

Does Grafton Funding lend in North Carolina?

Yes — we actively lend in North Carolina, including the Charlotte metro, the Triangle (Raleigh/Durham/Chapel Hill), Wilmington, and Asheville. We offer DSCR rental loans, fix and flip loans, and new construction financing for NC investment properties. Local NC line: (910) 218-1286.

Can I qualify for a loan without showing tax returns or personal income?

Yes — our DSCR loans are underwritten based on the property's rental income, not your personal income or tax returns. This makes them ideal for self-employed investors and business owners. We do require a credit check and down payment, but there's no traditional income verification.

What credit score do I need to get a loan from Grafton Funding?

For most DSCR rental loan programs, we generally look for a minimum credit score in the 660–680 range, though this can vary by program and loan-to-value. Fix and flip loans may have different requirements depending on experience and deal strength.

How much do I need to put down for a DSCR loan?

For DSCR rental loans, we typically lend up to 75–80% loan-to-value (LTV), meaning you'd need 20–25% as a down payment. The exact LTV depends on the property type, DSCR ratio, and your credit profile. We lend exclusively on non-owner occupied investment real estate.

How quickly can Grafton Funding close a loan?

Many of our transactions close in 2–4 weeks depending on the loan type, property, and how quickly documentation is provided. We prioritize responsive communication and efficient underwriting for investors who need to move fast on deals.

Does Grafton Funding work with first-time real estate investors?

Yes — we work with both new and experienced investors. For DSCR rental loans, first-time investors are welcome as long as the property cash flows and the borrower meets our credit and down payment requirements. For fix and flip loans, some experience is preferred but not always required.

Investment Property Loans in Arizona (2026 Guide)

4 days ago
5 min read

Arizona has become one of the most active real estate investment markets in the country — and for good reason.

Phoenix is one of the fastest-growing major metros in the United States. Scottsdale and Sedona are top-performing short-term rental markets. Tucson offers affordable entry prices with a large student and military rental base. And the entire state operates under landlord-friendly laws that make owning investment property more manageable than in coastal markets.

Quick Answer: Investment property loans in Arizona are available for DSCR rentals, fix & flip projects, short-term rentals, new construction, and bridge financing — all without W-2s or tax returns. Most programs require a 640+ credit score and 20–25% down. Grafton Funding finances investment properties throughout Arizona.

Why Arizona Attracts Real Estate Investors

Phoenix Metro

Remains one of the fastest-growing cities in the nation. The metro area — including Tempe, Mesa, Chandler, Gilbert, Scottsdale, and Glendale — has seen consistent population and rental demand growth for over a decade.

Scottsdale and Sedona

Premier short-term rental markets. Scottsdale draws convention traffic and destination travelers year-round. Sedona is one of the most visited tourist destinations in the Southwest, with vacation rentals commanding premium nightly rates.

Tucson

Offers some of the most affordable entry points in the state. With the University of Arizona, Davis-Monthan Air Force Base, and a growing tech sector, Tucson has a large and stable rental tenant base.

Flagstaff

Has emerged as a strong STR market due to its proximity to the Grand Canyon, Sedona, and ski resorts.

State-level advantages:

No rent control
Relatively fast eviction process compared to coastal states
Business-friendly regulatory environment

Investment Property Loan Types Available in Arizona

DSCR Loans (Long-Term Rentals)

DSCR loans are the most common investment loan in Arizona. They qualify based on the property's rental income rather than your personal income — no W-2s, tax returns, or employment verification required.

Minimum credit score: 640–680
Down payment: 20–25%
DSCR requirement: 1.0 or higher
Available statewide: Phoenix, Tucson, Scottsdale, Mesa, Gilbert, Chandler, Tempe, Flagstaff

Fix & Flip Loans

Arizona has one of the most active fix and flip markets in the country. Fix and flip loans are short-term bridge loans (typically 6–18 months) that finance both the purchase and renovation of distressed properties, qualifying based on ARV.

LTV: Up to 70–75% of ARV
Term: 6–18 months, interest-only
Rehab draws: Funds released in stages as work is completed

STR DSCR Loans (Airbnb / Short-Term Rentals)

Arizona's short-term rental market — particularly Scottsdale, Sedona, and Flagstaff — has produced strong results for STR investors. STR DSCR loans qualify using projected short-term rental income verified through AirDNA market data.

New Construction Loans

Construction-to-permanent loans and draw-based construction loans are available for investors building single-family rentals, small multifamily, and fix-and-hold projects.

Bridge Loans

For time-sensitive deals — auction purchases, estate sales, or situations where a property doesn't qualify for permanent financing yet — bridge loans provide fast capital, typically closing in 3–14 business days.

Ready to Finance an Investment Property in Arizona?

Grafton Funding offers DSCR, fix & flip, and STR loan programs throughout Arizona — no income documentation required.

View DSCR Loan Programs

Arizona-Specific Considerations for Investors

Property Taxes

Arizona's property tax rates are moderate — generally 0.6%–1.1% of assessed value depending on the county. This is significantly lower than states like Illinois or New Jersey, which helps DSCR ratios. Get a current tax estimate from the county assessor's website before running your DSCR numbers.

HOA Restrictions on Short-Term Rentals

Arizona passed a law in 2016 (SB 1350) that largely prohibited cities from banning short-term rentals outright — but HOAs can still restrict or ban STR activity. Always verify HOA rules before purchasing in a planned community.

Landlord-Tenant Laws

Arizona is generally considered landlord-friendly. The state does not have rent control, and lease agreements are generally enforced as written.

Top Arizona Markets for Investment Property Loans

Market	Best For	Notes
Phoenix	DSCR long-term rentals, fix & flip	High volume, broad tenant base
Scottsdale	STR DSCR, luxury rentals	Premium nightly rates, strong demand
Tucson	Affordable DSCR rentals	University/military market, lower entry price
Mesa / Gilbert / Chandler	Single-family DSCR	Strong suburban rental demand
Sedona	STR DSCR	Tourist market, premium rates year-round
Flagstaff	STR DSCR	Grand Canyon/ski proximity, seasonal demand

What You Need to Qualify

For a DSCR loan in Arizona:

Credit score: 640+ (680+ for best rates)
Down payment: 20–25%

Property DSCR: 1.0 or higher. No W-2s, tax returns, or employment verification required.

For a Fix & Flip loan in Arizona:

Credit score: 620+ (varies by lender)
Property in need of renovation with clear ARV upside
Experience helpful but not always required for first-time flippers

Bottom Line

Arizona is one of the most active investment real estate markets nationally — strong fundamentals in Phoenix, Scottsdale, Tucson, Sedona, and Flagstaff
DSCR, fix & flip, STR DSCR, new construction, and bridge loans available statewide
No W-2s or tax returns required; LLC financing supported
Property tax rates are moderate — favorable for DSCR calculations compared to many other states
Out-of-state investors welcome; borrower does not need to reside in Arizona

Frequently Asked Questions

Can I finance an Airbnb in Arizona without tax returns?

Yes. STR DSCR loans are available for Airbnb and vacation rental properties throughout Arizona — including Scottsdale, Sedona, and Flagstaff. These loans qualify using projected short-term rental income from AirDNA rather than personal tax returns. No W-2s or employment verification required.

Does Grafton Funding lend throughout all of Arizona?

Yes — statewide, including Phoenix, Scottsdale, Tucson, Mesa, Gilbert, Chandler, Tempe, Flagstaff, Sedona, and all surrounding counties. Arizona is one of our primary focus states.

Do I need to live in Arizona to get an investment property loan there?

No. Out-of-state investors regularly finance Arizona investment properties with DSCR and fix & flip loans. The subject property must be located in Arizona, but the borrower can live anywhere.

Can I use an LLC for an Arizona investment property loan?

Yes. DSCR and most non-QM investment loans in Arizona can be originated in the name of a single-member or multi-member LLC, or a foreign LLC registered in Arizona. Entity borrowing is fully supported, and personal guarantees are required from members with 20%+ ownership.

What is the minimum down payment for an Arizona investment property loan?

Most programs require a 20% minimum down payment for DSCR rental and STR loans, with some programs requiring 25% for first-time investors or lower DSCR ratios. Fix and flip loans are evaluated on LTC and ARV rather than a fixed down payment percentage.

Ready to Finance an Investment Property in Arizona?

Grafton Funding lends throughout Arizona — from Phoenix and Scottsdale to Tucson, Flagstaff, and beyond. Whether you're buying your first rental or adding to an existing portfolio, we can put together the right financing for your deal.

Start Your Pre-Qualification