Investment Property Loans

Indeed No problem. An Investment Property mortgage Loan or an Investor Mortgage Loan is a type of non-QM loan. Investment property loans are for a single-family, townhome, condo, or multi-unit property that has been purchased with the intention of earning a return on the investment, either through rental income, future resale or both.

For those interested in buying an investment property, we offer loans to fit unique investor needs. As an option, you may be able to use your current home equity to finance buying an additional property.

Investing in a property or multiple properties can have its perks. While most people look at rental investments initially for the passive income, there’s also the appreciation to look forward to in the long-term. In addition to monthly cash flow, there are also many tax benefits such as depreciation and a lower tax-rate for long-term profits*.

*Consult your tax advisor for more information and further eligibility requirements.

Are you ready for an investment property? While conventional loans are structured to make the loan experience simple for the borrower, investment loans require strong financial standing and healthy cash reserves. If you meet the qualifications below, there’s a good chance that purchasing an investment property is the right choice for you and your family.

For an investment loan, a down payment is a must. For a single-family home, though it can be as little as a 15% down payment is required, but on a 2 - 4 unit property, it is as low as 25% down. If you’re already in the property management game, you know that rental income can help you qualify, based upon the current rental market value.

Qualifying for an investment loan generally requires:

• Good credit – the minimum FICO for investment loans with us should be in a good or an excellent score range, although depending on the loan type and terms, it may differ for your unique situation.
• Cash reserves – at minimum it is best to have six months of cash reserves on hand, in addition to closing costs. However, there are different requirements based on your unique situation – the number of properties, aggregate unpaid balance, etc.
• Minimum down payment can be as low as 15%– although typically about 20% is the minimum down payment required to eliminate the need for mortgage insurance
• Debt-to-income – DTI, or the percentage of your income paid out to debts should be no more than 50%.
• Proof of income – steady income must be shown. For the typical employee, this generally means providing pay stubs and W2s, while self-employed borrowers may also be required to provide two years of tax returns.

Investor loans come with several benefits that make them an attractive option: 

• Accessibility: There are loan options available to investors that don’t require income or employment verification, like traditional mortgages. Instead, you can qualify based on the cash flow of the investment property you plan to purchase. 
• Limited documentation requirements: If you choose an Investor Cash Flow loan, you can skip loads of paperwork that you’ll need for traditional mortgages. This includes paystubs, bank statements, W2s, 1099s and tax returns, as the lender will be more interested in the documentation related to the earnings from the investment property. 
• Consider rental income: An investor loan is unique as it allows you to use rental income in lieu of income from traditional employment or self-employment to get a mortgage. 
• Faster approvals and closing times: These loans are originated by private lenders and often feature faster approvals and closing times than you’ll get with a traditional lender. 
• Flexibility: Investor Cash Flow loans can be used to purchase or refinance investment properties. For the latter, both rate-term and cash-out refinancing are options. 
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• Unfortunately, there are also drawbacks to consider before applying for a loan: 

  • Stringent credit guidelines: Investor loans are typically aren’t available to credit-challenged borrowers. You’ll need good or excellent credit to qualify for funding. 
  • High-interest rates: Borrowing costs, including interest rates and fees, are often higher on investor loans. Furthermore, a credit score that’s at the lower end of the “good” spectrum usually comes with a higher interest rate than you’d get with an exceptional credit history. 
  • Steep down payment requirements: The down payment requirement on investor loans is also on the higher end. In some instances, the lender will request a down payment of 30 percent or higher. 
  • Hefty reserves: Six to twelve months of reserves can also stretch your finances thin, particularly if you are a relatively new investor or have funds tied up in several other properties. 
  • Investment experience: Some lenders have reservations when considering loans from newbie investors. So, if you have minimal industry experience, you may have to look elsewhere for funding opportunities. 
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• - Max 75% LTV 
• - Min 575 Fico
• - Loan amounts up to $3M on SFR
• -  Loan amounts up to $7M on multifamily (5-24 units)
• - Rehab options available
• - Options for no interest on Rehab Draws until requested
• - Heavy Rehab options available
• - Non-Owner Occupied only
• - No Income or job verification
• - No prepayment penalty options available
• - Non-TRID (enabling a faster close)
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