Investment Loan

What Is an Investment Loan?

Investment Property Loan Requirements

Purchase or Rate & Term up to $2.5 million
Cash-out refinance up to $2 million
Qualify off subject property cash flow
No employment required
No income required
No debt-to-income ratio calculated
Single-family, condos, and 1-4 unit properties allowed

Loans for Investment Properties

30-Year Loan

Take advantage of low rates by locking into a low payment with a traditional 30-year loan.

15-Year Loan

Get the same security of a 30-year fixed rate mortgage, but pay your mortgage off in half the time.

Get Pre-Qualified

Not sure which program is right for you? We can get you pre-qualified and find you the loan that best meets your needs.

Planning Ahead

Personalize Finances

Before investing in real estate, ensure your finances are in order and understand down payment requirements, typically 20-25%.

Credit Score

Some programs focus on the property’s cash flow instead of your income, but a credit score of 740 or higher improves your chances of better financing.

Cash Reserves

Maintaining 6-12 months of savings or contributing to retirement accounts can provide financial stability.

Basics of Real Estate Investing

Calculate Cash Flow and Return on Investment

Calculate a property’s financial performance by determining monthly cash flow (rental income minus operating expenses) and ROI (annual cash flow divided by total investment).

Operating Expenses

Operating expenses for investment properties typically range from 60% to 80% of gross income, but the 50% rule offers a quick estimate, suggesting half of gross income covers expenses. This guideline helps investors assess a property’s financial viability.

Choosing a Profitable Property

Location is key to an investment property’s profitability; prioritize areas with low crime, strong job markets, good schools, and low property taxes. Use online platforms and local forums to gather insights.

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How to Buy an Investment Property and Become a Landlord

Investment Loan FAQ

What type of loan is best for an investment property?

The best loan for an investment property depends on your financial situation and investment goals. Common options include conventional loans, portfolio loans, and government-backed loans like FHA or VA for multi-unit properties where you live in one unit. Consult us to evaluate your needs and explore financing options tailored to your strategy.

What is a home equity investment loan?

A home equity investment loan allows you to tap into the equity of your primary residence or another property to fund the purchase of an investment property. This can take the form of a home equity loan or a home equity line of credit (HELOC), offering flexibility to finance your real estate investments.

What is the difference between a traditional loan and an investment loan?

Traditional loans are designed for primary residences, often offering lower interest rates and down payment requirements. Investment loans, on the other hand, are tailored for rental or income-generating properties and typically come with stricter credit, income, and down payment requirements due to the higher risk involved.

How do I get a loan for an investment property?

To secure a loan for an investment property, start by reviewing your credit score, debt-to-income ratio, and financial reserves. Work with us to get pre-approved, explore financing options, and provide documentation like income verification and details of the property. A strong financial profile increases your chances of securing favorable terms.

Mortgage Lending Simplified

SECURE DOCUMENT SCANNER
FAST & EASY PROCESS
REAL TIME LOAN UPDATES
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