Rental Property Loans

Perfect for professional investors looking to grow their portfolio of single-family rental properties.

Full 30 year terms, no balloons
Streamlined qualification process emphasizing DSCR rather than personal income
No tax returns required; No DTI calculations
Up to 80% LTVs
Simple, haggle-free pricing you can depend on
Protect your identity and other assets by borrowing in a corporate entity

Permanent Rentals

Set it and forget it finance; 30-year fixed rates, no balloons; Option to buy your rate down

Transitional Rentals

The perfect property waiting for the perfect time; 5/1 ARM and 7/1 ARM rate structures; Certainty of full 30 year terms

Rental Loan Program

30 year fixed product for stabilized properties

from 5.75%

Interest Rate

Origination Fee

up to 80%

Loan To Purchase Price

up to 80%

Loan To Value

Minimum DSCR

30 yr fixed rate

Term

Residential 1-4 units

Type of Property

$2,000,000

Maximum Loan Amount

$100,000

Minimum Loan Amount

680

Minimum FICO

Cash Out Refi

No Previous Experience Required

No Junk Fees

Instant Proof of Funds Letter

Rental Property Loan Qualifications

When qualifying for a rental property loan, the lender will make sure both the property and the borrower meet loan qualifications.

Choose the right size down payment

Plan on a 20% down payment. If you have stellar credit, you might only need 15%. If you have less than stellar credit, you may need as much as 35%.

Ensure you are financially ready

In addition to a more substantial down payment, plan on having 6-12 months of liquid cash reserves. This will help you in the event of hard times and make sure that you won’t immediately lose the property due to missed payments and foreclosure.

Improve your credit score

Lenders tend to vary pricing, terms, and conditions more on rental property loans than on owner-occupier loans. Do what you can to raise your credit score before applying. And, importantly, protect your credit score once you've applied so your loan closes smoothly.

Demonstrate qualifying income

If you're applying for an agency or bank loan, get your documents in order. You'll need pay stubs and tax returns with all of your tax return schedules. Get ready to answer questions about your tax returns for a year or two back. Also, make sure you have sufficient personal income, including any net operating income from your rental properties, to afford the monthly payment on your rental property.

Make sure the property is rent-ready

Construction is financed separately from rental loans (usually in the form of a hard money loan), so most lenders will check to make sure the property does not need any significant repairs.

Rental Property Loan FAQs

What types of loans can be used for an SFR investment property?

Our rental loan program is intended for SFRs (single-family residences), which refer to properties with 1-4 units. When it comes to financing a single-family home, there are essentially two giant buckets: government-sponsored loans and private label loans. These can further be broken down into consumer/owner-occupier loans and business purpose/investor loans.

Can you get a 30-year loan on an investment property?

Yes, we offer 30-year loans with fixed rates, no balloons, and the option to buy your rate down.

What’s a successful ROI on a rental property?

The key to a successful return on your investment property is to bring in more money than you owe. Ideally, the DSCR or Debt-Service Income Ratio would be 1.2 or greater, which indicates that the monthly rent covers all associated expenses and then some.

Can I put less than 20% down on an investment property?

An 80% LTV is considered the best-case scenario for rental property financing, but the more you can put down the better to lower your interest rates and monthly payments.

What type of loan is best for an investment property?

This depends on the type of investment property. For SFR rental properties, it depends on your circumstances. If you have strong personal income, good credit, substantial cash reserves, only plan to own one or two rentals, an agency loan might be the right path for you. If you have good credit, an established track record and you're not looking to grow your portfolio but rather optimize your financing, a bank might be the right choice for you. If you are self-employed and/or looking to grow a portfolio of rental properties, then an alternative lender, such as Visio, might be your best choice.

Is it hard to get an investment loan?

The difficulty of obtaining an investment loan depends on the type of loan. Agency loans are going to have much more stringent requirements than an alternative lender. You should plan on 45-60 days to get a rental property loan. Typically bank loans are the most difficult to obtain followed by agency loans. You should find alternative lenders, such as Visio, the easiest to deal with on your rental loans.

What credit score is needed to buy an investment property?

Most investors have a credit score of 700 or greater. You will find alternative lenders that will consider financing investors with FICO scores of 620 or greater.

What is the average interest rate on an investment property?

Interest rates and fees for rental property loans are higher than for owner-occupier mortgages. The difference depends on a variety of factors but generally ranges from 100 bps to 400 bps.

Get In Touch

Get Started Now