Conventional investment loan

The standard loan for a property you won't live in. Typically 20–25% down, underwritten on your credit and personal income, at a rate somewhat above what an owner-occupied house gets. It's the cheapest route if your personal finances are solid and you don't already have several financed properties.

DSCR loan

Here the lender underwrites the building, not your tax return: net operating income divided by the loan payment gives the DSCR, and that number decides the approval. Most want 1.20 or better. It's the route for income that's hard to document, or for buyers who've hit the conventional loan limit — in exchange, the rate and the down payment are both higher.

Living in one unit (duplex or triplex)

If you'll live in one of the units, you qualify as a homebuyer rather than an investor: far lower down payments and better rates. It's the cheapest way in, which is why it's so common in Milwaukee. The occupancy condition is real — you have to move in — and the loan says so in writing.

What the lender will ask for

Expect: two years of tax returns, recent bank statements, the purchase contract, and for a tenanted building, the current leases. If you already own a rental, they'll want its income history too. Gathering this before you apply saves weeks.

Get more than one offer

Two lenders in the same week can differ by half a point of rate and thousands in closing costs. Ask at least two for written terms and compare them line by line: rate, points, closing costs, and whether the payment can change over time.