Are you ready to build wealth and generate passive income through real estate but are unsure how to finance your next investment? An investment property loan could be the key to expanding your portfolio. At Loankea, we specialize in connecting ambitious investors with a wide array of nationwide mortgage solutions. Whether you’re purchasing your first rental property or your fifth, our flexible programs are designed to help you succeed quickly and efficiently.
What Is an Investment Property Loan?
An investment property loan is specifically designed for purchasing real estate you intend to rent out for income or renovate and sell for a profit. Unlike loans for primary residences, these loans are assessed with different risk criteria, often resulting in slightly higher interest rates and down payment requirements. The most common use is for non-owner-occupied properties, such as single-family rentals, condos, and multi-unit dwellings (up to 4 units). These loans empower you to leverage real estate to build long-term financial security.
Types of Investment Property Loans
The right financing strategy depends on your financial profile, investment goals, and the property itself. Loankea provides access to a diverse suite of nationwide mortgage programs to suit various needs.
Full Doc Loans
This is the traditional route, ideal for investors with conventional employment and strong, well-documented income. Full Documentation loans require comprehensive paperwork, including W-2s, tax returns, and pay stubs, to verify your debt-to-income ratio (DTI). They often offer competitive rates for those who qualify.
DSCR Loans (Debt Service Coverage Ratio)
The DSCR loan is a powerful tool for investors, as it focuses on the property’s profitability rather than your personal income. Qualification is based on the ratio of the property’s annual rental income to its annual mortgage debt. A DSCR of 1.0 means the property breaks even, while a ratio above 1.0 indicates positive cash flow. This is an excellent option for expanding a portfolio without personal income verification.
Bank Statement Loans
Tailored for self-employed borrowers or business owners, this program uses your bank statements—typically 12 to 24 months—as the primary proof of income instead of tax returns. This is ideal for those who have strong cash flow but may have write-offs that reduce their taxable income on paper.
Asset Based Loans
If you have significant liquid assets but perhaps lower or irregular income, an Asset Based Loan could be your solution. This program allows you to qualify based on your verified assets (such as cash reserves, investment accounts, or retirement funds) rather than traditional income.
Home Equity Loans (HELOC)
Leverage the equity you’ve built in your primary residence or another investment property. A Home Equity Loan or Line of Credit (HELOC) provides you with a lump sum or revolving credit line, which can be used for a down payment on a new rental property or to fund renovations on an existing one.
Residential Transition Loans (RTL) & Bridge Loans
These are short-term financing solutions for investors who need speed and flexibility. An RTL or Bridge Loan is perfect for property acquisition, rehabilitation, or construction projects. They provide immediate capital with interest-only payments, designed to be paid off quickly once the property is sold or refinanced into a long-term mortgage.
Private Money Loans
For unique or time-sensitive investment opportunities that may not fit conventional guidelines, Private Money Loans offer an alternative. Funded by private individuals or groups, these loans are primarily asset-based and can be secured quickly, though they often come with higher costs and shorter terms.
Loan Program Comparison
We offer tailored solutions for a variety of investment strategies:
| Loan Type | Minimum Down Payment | Primary Qualification Method | Ideal For |
|---|---|---|---|
| Full Doc Loans | 20-25% | Personal Income (W-2s, Tax Returns) | Salaried investors with strong documentation |
| DSCR Loans | 20-25% | Property’s Rental Income | Portfolio investors focused on cash flow |
| Bank Statement Loans | 15-20% | 12-24 Months of Bank Statements | Self-employed and business owners |
| Asset Based Loans | 20-25% | Verified Liquid Assets | High-net-worth individuals |
| Home Equity Loans | N/A | Equity in an Existing Property | Owners looking to leverage current assets |
| Bridge Loans / RTL | 25-30% | Property’s After-Repair Value (ARV) | House flippers and renovators |
| Private Money Loans | 25%+ | Property Value & Investor Experience | Complex or time-sensitive deals |
Loankea is your nationwide partner for investment property financing. Explore your options and find a loan that fits your strategy today.
Refinancing an Investment Property Loan
Refinancing is a strategic move for existing real estate investors. It allows you to adjust your loan terms, lower your interest rate, or access your property’s built-up equity.
Rate-and-Term Refinance: This option replaces your current loan with a new one featuring a lower interest rate or a different loan term, potentially reducing your monthly payments and total interest paid.
Cash-Out Refinance: This allows you to tap into your property’s equity by taking out a new, larger loan. You pay off the original mortgage and receive the difference in cash, which can be used for property upgrades, debt consolidation, or a down payment on another investment property.
Benefits of Property Investment Loans
Securing the right financing opens the door to numerous wealth-building advantages:
Generate Passive Income: Rental properties provide a consistent stream of income that can supplement your earnings or fund your retirement.
Build Equity and Appreciation: As your tenants pay down the mortgage and the property value increases over time, your net worth grows.
Diversify Your Investment Portfolio: Real estate is a tangible asset that can balance risk in a portfolio heavily weighted in stocks and bonds.
Enjoy Potential Tax Advantages: Investors can often deduct expenses like mortgage interest, property taxes, insurance, and depreciation.
How to Get a Loan for a Rental Property
The process for securing an investment property loan is straightforward with the right partner.
Define Your Investment Strategy: Determine your goals—are you looking for a long-term rental, a fix-and-flip, or a multi-unit property?
Explore Your Financing Options: Review the loan programs above to identify which might be the best fit for your financial situation.
Get Pre-Qualified: Contact Loankea to get a clear picture of your budget and purchasing power. This strengthens your position when making an offer.
Submit Your Application: Once you find a property, you’ll complete a full application and provide the necessary documentation for your chosen loan program.
Close on Your Loan: After underwriting approval, you’ll proceed to closing, receive the keys, and officially become a real estate investor.
Benefits of Loankea’s Nationwide Programs
No W2s or Tax Returns Required: We use alternative methods to qualify you.
Competitive Rates: Access wholesale market rates through our fintech platform.
Fast Closings: Pre-approvals in as little as 24 hours.
Support for Unique Scenarios: Non-resident? Self-employed? We have solutions.
Who Can Benefit?
Experienced investors scaling their portfolios.
New investors starting with rental properties.
Self-employed entrepreneurs and business owners.
Foreign nationals investing in U.S. real estate.
Loankea proudly offers nationwide coverage, currently serving investors in all states except North Dakota, South Dakota, and other specific exclusions. Contact us to confirm availability in your state.
