What Is a Conventional Lender, and How Do They Differ From Investor Lenders?
December 26, 2025
Conventional lenders are financial institutions—most commonly banks or large mortgage companies—that focus on Qualified Mortgages (QM). These loans follow standardized guidelines set by Government-Sponsored Enterprises (GSEs), such as Fannie Mae and Freddie Mac.

Because conventional loans must meet strict requirements, borrowers are typically evaluated based on:
  • W-2 income and employment stability
  • Debt-to-income (DTI) ratios
  • Personal credit history
  • Long documentation trails

Some conventional lenders may also offer Non-QM loan options, but their primary focus remains homeowner-focused lending rather than investment-driven strategies.

For real estate investors—especially those scaling portfolios, using creative strategies, or prioritizing speed—conventional lending can feel restrictive. Business Purpose Lending (BPL), like the programs offered by Lend Investors Capital, is designed specifically to support investors with asset-based underwriting and fewer personal income limitations.