Investment property loans are essential for real estate investing. They provide the funds needed to buy and manage income-generating properties. It’s important to understand the different mortgage options available for investment properties so you can choose the financing strategy that aligns with your investment goals.
Investment property mortgages offer multiple financing pathways, each designed to accommodate different investment scenarios and borrower requirements.
Benefits of an Investment Loan
- Enables the purchase of income-generating properties.
- Possible tax write-offs for mortgage interest and property expenses.
- Opportunity to benefit from property value appreciation over time.
- Incorporates real estate holdings into investment mix, creating portfolio variety.
Why Loankea Is Your Go-To Lender for Investment Property Mortgages
When looking for a P&L loan mortgage, choosing the right lender makes all the difference. At Loankea, we provide tailored lending solutions to help you achieve your goals.
- Conventional Loans with down payment of 20-25%, interest rates of 6.5-8% (fixed), terms of 15-30 years, best suited for single-family properties, and minimum credit score of 680.
- Portfolio Loans requiring 15-30% down payment, interest rates of 7-9% (adjustable), terms of 5-30 years, ideal for multiple properties, with no limit on number of properties.
- Cash-Out Refinance offering up to 75% of property value, interest rates similar to primary mortgage, cash access of $50,000-$500,000, requiring 30-40% equity, and 6 months ownership waiting period.
- DSCR Loans featuring no income verification needed, DSCR ratio of 1.25 or higher, down payment of 20-25%, interest rates of 7-9%, and property must generate income.
- Home Equity Loans allowing borrowing up to 80-85% of equity, fixed rates of 7-10%, terms of 5-15 years, available as a second mortgage option.
Each loan type features competitive interest rates, flexible repayment terms, and personalized support throughout the application process.
Investment Property Loan Requirements
Real estate investment loans can be highly profitable yet riskier than conventional home loans. Though experienced investors may face obstacles, strategic property investment continues to provide opportunities for wealth building. Lending institutions maintain distinct criteria that applicants need to meet to obtain investment property loans.
The down payment stands as a fundamental requirement that directly influences your loan terms, interest rate, and monthly payments. For investment properties, lenders typically require a down payment of 20-25% of the purchase price.
Key qualifying requirements include:
Rental Income Documentation
Lenders require proof of potential rental income through a comprehensive business plan. This plan should detail:
- Projected rental income analysis
- Maintenance and repair cost estimates
- Property management expenses
- Overall cash flow projections
Credit Score Requirements
Most lenders mandate a minimum credit score of 640, though specific requirements vary by institution. Prospective borrowers should monitor and improve their credit scores well in advance of applying.
Cash Reserves
Lenders commonly require borrowers to maintain cash reserves sufficient to cover 6-12 months of mortgage payments, ensuring financial stability throughout the investment period.
What We Offer at Loankea
At Loankea, we understand that every investor has unique needs. That’s why we offer a wide range of investment property loans to suit different requirements. Whether you’re an experienced investor or just starting out, we have options that can help you achieve your goals.
Key Program Features and Flexibility
Qualification Requirements:
- No income verification or debt-to-income ratio requirements
- Minimum 15% down payment required
- Expedited closing available within 5 business days
Additional Benefits:
- Customized deal structuring to meet client needs
- Flexible terms and conditions
- Comprehensive financing solutions for investors
Financing Options:
- Cash-out refinancing up to 80% LTV
- Complete budget financing for fix-and-flip projects
- Construction financing up to 80% for ground-up projects
- Extended term programs available up to 40 years
- Interest-only payment options
Property Types Eligible:
- Single-family residential homes
- Condominiums
- Townhouses
- Multi-family properties (minimum 2 units)
- Both residential and commercial properties accepted
Choosing the right mortgage for investment properties is crucial to align with your investment strategy. The dedicated team at Loankea is ready to guide you through each step, ensuring you make informed decisions that maximize your returns.
