Investment Property Loans
Financing Solutions for Real Estate Investors
Investment property financing can help qualified real estate investors purchase, refinance, or access equity in residential properties held for investment purposes. Financing options vary depending on the property, borrower, investment strategy, and lender guidelines.
Prosper Path Group works with a network of lending sources to help investors explore financing options appropriate for their real estate goals.
Who This Is For
Who May Consider Investment Property Financing?
Investment property financing may be appropriate for a range of real estate investors. Eligibility depends on the borrower, property, and lender requirements.
- First-time and experienced real estate investors.
- Investors purchasing rental properties.
- Investors refinancing existing investment properties.
- Investors seeking cash-out refinancing on eligible investment properties.
- Investors building or expanding a rental-property portfolio.
- Investors purchasing eligible single-family or multi-unit residential investment properties.
Eligible Properties
Types of Properties That May Be Eligible
Depending on the lender and loan program, financing may be available for eligible residential investment properties. Larger multifamily and commercial properties may require commercial or specialized financing programs.
Single-Family Rental Properties
Eligible single-family homes held for investment or rental purposes may qualify for investment property financing programs.
Condominiums
Eligible condominium units held for investment purposes may be considered, subject to lender and project approval requirements.
Townhomes
Eligible townhomes held for investment or rental purposes may qualify depending on the lender and program.
2–4 Unit Residential Properties
Small multi-unit residential properties with two to four units may be eligible for certain investment property financing programs.
Certain Multi-Unit Investment Properties
Certain multi-unit investment properties may be eligible depending on the lender, program, and property characteristics.
Financing Programs
Investment Property Financing Options
Available financing programs may vary by lender, property type, and borrower qualifications. Not every program is available to every investor.
Conventional Investment Property Loans
Traditional mortgage financing may be available to qualified investors based on factors such as income, credit, assets, property value, and lender underwriting requirements.
DSCR Loans
Debt Service Coverage Ratio (DSCR) loans are commonly used by real estate investors. DSCR programs generally evaluate the property's rental income in relation to its required debt payments. Depending on the lender and program, DSCR financing may place greater emphasis on the property's cash flow rather than relying solely on the borrower's traditional personal-income documentation. Documentation and underwriting requirements vary by lender and program. DSCR requirements vary substantially among lenders.
Purchase Financing
Acquiring Investment Properties
Eligible investors may use investment property financing to acquire rental properties and expand their real estate portfolios. Down-payment, reserve, credit, property, and documentation requirements vary according to the lender and program.
Refinance Options
Investment Property Refinancing
Investors may be able to refinance an existing investment-property mortgage. Refinancing does not guarantee a lower interest rate or reduced monthly payment.
- Restructure existing financing.
- Change the loan term or financing structure.
- Seek different financing terms when available.
- Access available property equity through an eligible cash-out refinance.
Equity Access
Cash-Out Refinance for Investment Properties
Eligible investors may be able to access a portion of accumulated property equity through cash-out refinancing. Funds may potentially be used for purposes such as property improvements, renovations, purchasing additional investment properties, business or investment purposes, or other eligible uses permitted by the lender.
Cash-out refinancing increases the amount borrowed against the property and reduces available property equity.
Portfolio Investors
Financing for Portfolio Investors
Investors who own multiple rental properties may have access to financing programs designed for experienced or portfolio investors. Program requirements can vary based on a number of factors.
- Number of properties owned
- Property cash flow
- Investor experience
- Credit profile
- Available reserves
- Property type
- Loan amount
- Overall financial profile
Eligibility Factors
Investment Property Loan Qualification
Qualification may depend on a number of factors reviewed by individual lenders during the application process.
Important Notice
Investment Properties vs. Primary Residences
Investment property loans are intended for properties held primarily for investment or rental purposes. Borrowers must accurately disclose the intended occupancy and use of the property. Misrepresenting a property's intended use or occupancy on a mortgage application is mortgage fraud.
We Can Help
Not Sure Which Investor Loan Is Right for You?
Every investment scenario is different. The appropriate financing structure may depend on the property, rental income, available equity, investment strategy, borrower qualifications, and lender requirements. Prosper Path Group can help investors explore available financing options through its lending network.
Ready to Begin?
Explore Investment Financing
Connect with Marisol Charleus and the Prosper Path Group team to discuss your investment property financing goals and explore the programs that may be right for you.
Investment property and DSCR loan programs are subject to lender underwriting guidelines, property eligibility, borrower qualifications, appraisal requirements, and program availability. Interest rates, loan terms, down-payment requirements, reserve requirements, DSCR requirements, fees, and eligibility are subject to change. Not all applicants or properties will qualify.
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