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Program 07
Conventional Investment in Tacoma
Tacoma conventional investment property loans for buy and hold rentals.
Standard, competitively priced financing for non-owner-occupied investment property when your file fits full documentation. Across seven of the eight Tacoma-area cities we serve, mid-tier home values run roughly $474,000 to $665,000, a band where conforming investor product covers most of the market. Gig Harbor is the outlier, where a higher-basis waterfront file is more likely to press into jumbo territory. We'll compare it against DSCR so you take the structure that fits; business-purpose only, subject to underwriting.
Non-owner
occupied
30-yr
fixed avail.
80%
max LTV
Low
rates
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
For investors who qualify conventionally, this is usually the lowest-cost long-term money on a buy-and-hold. We help you weigh it against our DSCR and bank-statement programs so the loan matches your file and your goals.
Who it's for
Buy-and-hold investors
Non-owner-occupied 1-4 units
Borrowers who document income
Purchase or refinance
Typical terms
PropertyInvestment, non-owner-occ
Max leverageUp to 80% LTV
Term30-yr fixed / ARM
IncomeDocumented
CreditFrom 580
UsePurchase or refi
*Typical terms, subject to underwriting and market conditions.
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Local FAQ
Conventional Investment in Tacoma, answered.
Do Tacoma-area investment property prices fit a standard conforming loan, or am I looking at jumbo?
Conforming covers most of this market. Zillow's June 2026 mid-tier home value ran from $473,733 in Parkland up through $665,059 in University Place across seven of the eight cities we serve here, a band that a routine conventional investor loan handles comfortably. Gig Harbor is the exception at $828,733, a waterfront market where you should expect jumbo pricing and documentation to come into play. See conventional investment terms or send us the address and purchase price and we'll tell you where it lands.
Does Washington's tax setup actually help the math on a conventional buy-and-hold here?
Yes, on both ends of the hold. Washington has no personal or corporate income tax on income earned today, so the rent your Tacoma property produces isn't taxed at the state level while you hold it. A separate 9.9% tax on individual income above $1,000,000, which expressly reaches rental and pass-through income, is scheduled for tax years beginning 2028 and is under legal challenge, so it does not touch a file you write today. On the way out, Washington's capital gains excise tax carries an explicit real estate exclusion: real property transferred by a recorded deed or similar instrument is outside the tax. That combination improves after-tax hold math here relative to a state that taxes both. Talk to your CPA about how a sale structured through an entity interest, rather than a deed, could change that picture. See conventional investment terms.
If I want to raise rent on a conventionally financed Tacoma rental, what actually limits me?
Two layers, and both bind together. Statewide, Washington's rent-increase cap limits 2026 increases to 9.683 percent (7 percent plus CPI, or 10 percent, whichever is less), with no increase in the first 12 months of a tenancy and at least 90 days' notice required. On top of that, Tacoma itself requires 180 days' written notice of any rent increase, on a city-established form, under TMC 1.95.060 as amended effective 2026-01-01. Plan a meaningful increase two seasons ahead rather than one. Compare that against a DSCR loan if the rent-driven qualification fits your file better.
Beyond the rent cap, is there a Tacoma-specific rule that could catch a conventional-financed rental off guard?
Yes, and it's a cash cost, not just a notice period. Under Tacoma's Landlord Fairness Code Initiative, TMC 1.100.050, a rent increase of 5 percent or more can entitle a tenant who chooses to move instead of pay to relocation assistance, from two months of rent up to three months depending on the size of the increase, payable within 30 days of the tenant's request. A narrow exception applies to owners of four or fewer rental units in Tacoma for the seasonal eviction moratoriums, but the relocation-assistance duty itself turns on the size of the increase, not the owner's portfolio size. Model that cost before you plan a rent step-up. See conventional investment terms.
Does Pierce County's property tax process create any surprises for a long-term conventional hold?
The main one is that reassessment never pauses. Pierce County revalues every property annually, with a physical inspection cycle running once every six years, and Washington applies no assessment-increase cap and no general homestead exemption, so an investor and an owner-occupant are taxed on the same basis. Practically, a Tacoma property that appreciates or gets improved will show that value in the following year's assessment, with no multi-year lag to plan around. If you disagree with an assessment, Pierce County's Board of Equalization appeal deadline is July 1 of the assessment year, or 60 days after the mailing date on the value-change notice, whichever is later. We could not source a specific Pierce County or Tacoma levy rate this pass, so confirm the parcel's tax code area rate with the Assessor-Treasurer's office directly rather than estimating one for your file.
How does the Joint Base Lewis-McChord economy factor into a conventional investment purchase versus a DSCR one?
It's mostly a DSCR story, but it still matters for a conventional file's exit. JBLM is the largest employer in Pierce County, with roughly 70 percent of its workforce living off base, which is the demand engine behind rental cities like Lakewood, Spanaway and Parkland. A conventional loan qualifies on your income rather than the property's rent, so the base's published Basic Allowance for Housing doesn't drive your approval the way it does on a DSCR loan, but it's still useful context for underwriting your own rent assumptions and your exit if you ever refinance into a rental-income structure. Ask us to run both side by side.
How much do I put down on a Tacoma investment property with a conventional loan?
Twenty percent of the price, plus closing costs. We go to up to 80% LTV on a non-owner-occupied file, so on a $500,000 Tacoma purchase that is $400,000 from us and $100,000 from you (500,000 x 80% = 400,000). Seven of the eight cities we serve here ran a mid-tier value between roughly $474,000 and $665,000 in June 2026, so that arithmetic is close to the real payment for most of this market. Subject to underwriting.
How low can my credit score go on a Tacoma conventional investment file?
Credit starts at 580 on this program. That is lower than our DSCR and bank statement floors, which start at 640, so a full-documentation file is sometimes the more forgiving path on score alone. The trade is documentation: income is fully documented here, and the loan runs as a 30-year fixed or an ARM. Subject to underwriting.
My returns are written down. Is conventional still the right Tacoma program?
Probably not, and it is cheaper to find that out now. A conventional investment loan is fully documented, so returns built to minimize taxable income read thin no matter how strong the deposits are. If that is your situation, our bank statement loan qualifies on 12 to 24 months of deposits and our DSCR rental loan qualifies on the Tacoma property's own rent, with no W-2s and no tax returns on either. Ask us to run all three side by side. Subject to underwriting.
More Conventional Investment questions, answered on the program page
Resources
Guides for Conventional Investment
Rental / DSCR · 5 min read
What Is a DSCR Loan? How Investors Qualify on Rental Income
Read the guide Rental / DSCR · 5 min read
DSCR vs Conventional Loan: Which Is Better for Investment Property?
Read the guide Bank Statement / No-Doc · 5 min read
Bank Statement and No-Doc Loans for Self-Employed Investors
Read the guide Rental / DSCR · 5 min read
How to Finance a Rental Property in an LLC
Read the guide More in Tacoma
Other programs in Tacoma
Fix and FlipUp to 90% / 100% rehabRental / DSCR30-yr fixed, DSCR from 0.75Ground-Up ConstructionUp to 70% LTV, most statesCRE BridgeUp to $10M, 24-36 moTransactional FundingSame-day double-close capitalBank Statement / No-DocNo tax returns requiredPortfolio LoansMultiple properties, one loanCRE PermanentLong-term agency & permSBA Financing7(a) & 504 placement
About the local figures on this page
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-15.
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