DSCR Rental Loans
Maximize your rental property investments with DSCR loans, designed to offer financing based on a property’s cash flow, not personal income. This flexible option helps you grow your portfolio without the hassle of traditional income documentation.
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Fix & Flip Loans
Take advantage of short-term financing tailored for real estate investors looking to purchase, renovate, and quickly sell properties. With fast approvals and competitive terms, Fix & Flip loans enable you to transform distressed homes into profitable assets.
New Construction Loans
Build your next investment property with confidence using Construction Loans, crafted for developers and builders. From land acquisition to project completion, this financing option offers flexible terms and draw schedules that align with your construction timeline.
Bridge Loans
Secure quick, short-term financing to bridge the gap between buying and selling investment properties. Bridge loans provide investors with the capital they need to act swiftly in competitive markets while waiting for long-term financing or property sales.
Financing Rental Properties
Real estate is a powerful long-term investment strategy that generates passive rental income. However, the high starting cost makes it difficult for real estate investors to get started with owner financing alone. Luckily, it's possible to finance a rental property with a smaller upfront cost if you obtain the right investment property loan.
However, it's important to carefully weigh your options for rental property loans to ensure you choose the right product.
What is an investment property loan?
An investment property loan is a tool that provides financing for rental properties, whether they are long-term residential rental properties, vacation homes, or commercial buildings. These are specialized products private lenders provide to real estate investors. They often have slightly different terms and mortgage rates than owner-occupied property loans.
FundNow Capital Investment Property Loans for Professional Investors
FundNow Capital offers a ton of different rental property loans, helping investors grow their rental portfolios. Our loan programs offer simple and dependable mortgage financing for single-family, small multi-family, and mixed-use commercial properties.
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Investment Loans Through FundNow Capital
Rental Loans
Hold Forever or sell at the right time: A dramatically simplified process
One of the most popular investment property loan options is for single-family rental properties with 1 to 4 units. These properties can be held forever, forming the backbone of your investment portfolio, or be sold when market conditions change and you'd like to purchase another investment. We offer a dramatically simplified qualification process compared to conventional loans, enabling any real estate investor to develop financial stability through real estate.
Vacation Rentals
Underwritten using short-term rents. Ideal for business owners and self-employed borrowers.
Vacation rental properties in attractive tourist areas can generate strong cash flow, making them a highly lucrative real estate investment option. Our specialized investment loans for vacation properties are underwritten based on short-term rents and are ideal for self-employed investors, thanks to their streamlined underwriting process. Business owners can take out these loans under a corporate entity and protect their personal assets while expanding their investment portfolios.
DSCR Loans
A Debt-Service Coverage Ratio (DSCR) loan is ideal for commercial property thanks to its approval requirements. Unlike conventional loans, which rely on personal financial information such as your debt-to-income ratio, a DSCR loan determines eligibility based on the property's net operating income compared to its monthly mortgage payments. This makes them ideal for self-employed borrowers, who may be denied conventional mortgage loans from most mortgage lenders based on their credit history or income.
DSCR investor loans also have more common sense limits to how many investment properties you can roll into the mortgage loan, enabling you to expand your portfolio faster than other mortgage loan programs.
Cash-Out Refinance Loans
Cash-out refinancing and home equity loans are excellent ways to leverage an existing rental property to secure another mortgage loan. These options can give you a better rate for your current investment property, boosting your profit. As a premier investment property mortgage lender, we'll help you access a loan program with interest rates and terms that fit your needs.
Why You Should Choose FundNow Capital
At FundNow Capital, we couple our laser-like focus and streamlined process to provide a financing experience that’s as simple and pain-free as possible. With innovative technology and an experienced team, we guide professional investors through the process of finding and securing rental loans best suited to their property and financial goals.
By partnering with us, investors benefit from:
- 30-year financing for rent ready investment properties including long-term single-family rentals and vacation rentals
- Simpler documentation with no personal DTI and no tax returns
- LTVs up to 80% on purchases and refinances
- The ability to protect your assets and identity by borrowing through a corporate entity
FAQs on Investment Property Loan Programs
What type of mortgage should I get for an investment property?
Your choices for investment property mortgages include a conventional mortgage, a DSCR loan, a hard money loan, and a home equity loan. Your decision depends on how long you intend to hold the investment property, whether you can qualify based on a hard credit pull, how much you have in cash reserves, and how large of a down payment you can provide.
A conventional mortgage or home equity loan are good choices for a brand-new investor with little investment property mortgage experience. On the other hand, an experienced investor who intends to hold their rental property for the long term, is purchasing the property with a strong cash flow, and has a good credit score could benefit more from a DSCR loan, as it's based on net operating income rather than personal documentation. Hard money loans are best for those who are very certain about how to close investment property loans and are specifically looking to flip houses.
How many investment property loans can I have?
Most conventional real estate lenders let you have mortgages on up to four properties, but Fannie Mae lets you have up to ten. For FHA loans and VA loans, there are strict limits on how many you can have based on residency, making them a less-than-ideal choice for investors.
DSCR loans let you roll multiple properties into the same loan, so you can have more than ten investment properties at a time.
What is the interest rate on investment property loans?
Investment property mortgage rates are about 0.5 to 0.85% higher than for residential loans. So, for example, if the current residential mortgage rate was 7%, the investment property mortgage rate would be between 8.25% and 10%. As with other mortgage products, the interest rates you can access depend on your credit score, but they also depend on the profitability of the rental property you are buying.
How much down payment is needed for an investment property loan?
Down payments for a rental property loan are higher because these loans are higher risk to the lender. You will usually need a 20% to 25% down payment for an investment property.
What credit score do you need for an investment property loan?
You should strive for a credit score of at least 680 for a rental property loan, though some private lenders will expect a credit score of 700 or more, depending on the level of risk involved with the particular investment property. Those with lower credit scores may be asked to provide higher down payments to offset risk.
Are investment property loans available to LLCs?
Yes, they are. Our Lenders provide investment property loans to corporate entities as well as to private investors
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