Loan Program Options
Investment property loans are a type of mortgage specifically designed for purchasing properties intended to generate income, such as rental properties or commercial real estate.
What is an Investment Property Loan?
An Investment Property Loan is a mortgage designed for borrowers looking to purchase or refinance rental properties, vacation homes, or multi-unit properties. These loans provide the financing needed to expand a real estate portfolio, whether for long-term rentals, short-term vacation rentals, or fix-and-flip properties.
Why consider an Investment Property Loan?
Investment property loans offer specialized financing solutions for real estate investors looking to generate passive income and build wealth. Key benefits include:
Flexible financing for rental properties: Whether buying single-family homes, multi-units, or short-term rentals, investment loans cater to various property types.
Higher loan limits: Borrow more compared to standard home loans, helping investors maximize property potential.
Potential for higher returns: Rental income can help offset mortgage payments and generate positive cash flow.
Diverse loan options: Choose from conventional, jumbo, portfolio, and commercial loan programs to match investment strategies.
Build long-term wealth: Real estate is a tangible asset that appreciates over time, offering both rental income and equity growth.
Investment property loans are tailored for real estate investors, offering financial tools to expand and diversify rental property holdings.
Types of Investment Property Loans
Investment property loans come in various types, each catering to different investment strategies and borrower needs. Understanding the available options helps investors choose the best loan for their goals.
Conventional Investment Loans
Available for single-family rentals, duplexes, and multi-unit properties (up to 4 units).
Higher down payment requirements (typically 15-25%).
Fixed or adjustable-rate mortgage (ARM) options.
Stricter credit score and income documentation requirements.
DSCR (Debt Service Coverage Ratio) Loans
Designed for real estate investors who want to qualify based on rental income, rather than personal income.
No personal income verification required, making it easier for investors to scale their portfolio.
Loan approval is based on the property’s cash flow and ability to cover mortgage payments.
Fix-and-Flip Loans (Hard Money Loans)
Short-term financing for investors looking to buy, renovate, and sell properties for profit.
Typically 6-24 months in duration with higher interest rates but fast approval.
Based on property value rather than borrower credit.
Portfolio Loans
Ideal for investors with multiple rental properties, allowing them to finance several properties under one loan.
Offered by specialty lenders and investment-focused banks.
Flexible underwriting and fewer restrictions than conventional loans.
Commercial Investment Property Loans
Designed for properties with five or more units, such as apartment complexes or mixed-use buildings.
Requires larger down payments and often involves business entity structuring (LLCs, corporations, etc.).
Available through banks, credit unions, and private lenders.
Who Should Consider an Investment Property Loan?
Investment property loans are a great choice for:
New and experienced real estate investors looking to expand their rental portfolio.
Buyers purchasing short-term rentals (Airbnb, VRBO) or long-term rental properties.
Fix-and-flip investors seeking quick financing for property renovation projects.
Landlords seeking to refinance existing properties for better loan terms or cash-out options.
With specialized financing options, competitive rates, and tailored loan structures, investment property loans offer the ideal solution for growing a real estate portfolio.
Your Goals. Your Home. Your Brightside.
Home financing should feel empowering, not overwhelming. At Brightside Mortgage, we’re committed to helping you achieve homeownership with confidence, clarity, and peace of mind. Let’s turn your homeownership dreams into reality—together.
