Investment Property Loans
Financing a rental is a different exercise from financing a home. The underwriting is tighter, the down payment is larger, and there are routes that look at the property income instead of your tax returns.
In plain language
A conventional investment loan is underwritten on you: your income, your debts, your reserves. Expect a larger down payment than on a primary residence and a rate priced for the added risk.
There are also programmes underwritten on the property itself, where the rent it produces carries the loan rather than your personal income. For an investor with several properties, that is often the only way to keep buying.
This is probably you if
- You are buying your first rental and want the numbers to work before you commit
- You already own property and conventional guidelines have started to limit you
- You are looking at two to four units, which finances more favourably than most people realise
Three steps, in order
- We start from the deal, not the loan. If the property does not work, the financing does not matter.
- We choose between personal income underwriting and property income underwriting on which gets you the better outcome, not on which is easier to process.
- We structure it with the next purchase in mind, so this deal does not block the one after it.
What people ask me
Typically more than on a home you live in, and it varies by programme and unit count. Two to four unit properties can behave differently from single family. Bring me the address and I will price it properly.
On most programmes some portion of the market or actual rent counts, at a discount to allow for vacancy. On property income programmes the rent carries the loan almost entirely.
Yes, and it is one of the best moves available to a first time buyer. Living in one unit of a two to four unit property means you finance it as a primary residence, with a primary residence down payment, while a tenant pays part of the mortgage.
Worth a look while you are here
Fixed Rate Mortgage
One payment, one rate, for the whole loan. The default for a reason.
Read moreFHA Home Loan
A lower bar to clear. Built for buyers with a smaller down payment or a shorter credit history.
Read moreVA Home Loan
No down payment, no monthly mortgage insurance. The strongest loan in the country, if you earned it.
Read moreThink Investment Property Loans might be the one
Let us confirm it against your actual numbers before you fall in love with a house.