Real estate can be a powerful way to build wealth, and your first rental purchase is a big milestone. Investment property financing has its own rules that are smart to learn before you make an offer.
What to expect
- Larger down payments, commonly 20% to 25%
- Rates that are typically a bit higher than for a primary home
- Reserve requirements, meaning savings left after closing
- Rental income that can help you qualify on some programs
Loan options for investors
You can use a conventional loan and qualify on your personal income, or use a DSCR loan that qualifies based on the property's rental income instead of your tax returns. DSCR is popular for scaling a portfolio.
Run the numbers first
Before buying, estimate rent, expenses, vacancy, and the mortgage payment to confirm the property cash flows the way you expect.
Whether you qualify on personal income or the property's cash flow, we can structure the loan to help you grow your portfolio.