Financing a Rental Property? Here's a Loan Program Worth Knowing About
If you're a real estate investor looking to buy or refinance a rental property, you've probably noticed that not all mortgages are created equal. Loans for investment properties work differently than the mortgage you'd get for your own home, and one option we are proud to offer is called Investor Plus.
Here's what you need to know, in plain English.
What Is It, Exactly?
Investor Plus is a mortgage program built specifically for investment properties — think single-family rentals, small multi-unit buildings (2-4 units), condos, and PUDs. It's designed with landlords and investors in mind, which means some of the paperwork you'd expect with a typical home loan, like certain consumer protection disclosures, doesn't apply, since these loans are treated as business-purpose financing rather than personal loans.
What Can You Use It For?
Buying an investment property
Refinancing to a better rate or term
Cash-out refinancing to pull equity out of a property you already own (useful for funding your next deal, renovations, or other business needs)
Loan amounts range from $100,000 up to $2 million, depending upon the the details of the borrower’s full financial details, so it can work for a single rental home or a small portfolio purchase.
The Basics Investors Should Know
Down payment: Most loans top out around 80% loan-to-value, meaning a 20% down payment (or more) is typical. Well-qualified borrowers may be able to go as high as 90% on a purchase.
Credit score: Requirements vary based on your specific situation, but this program is generally aimed at borrowers with solid, established credit.
Interest-only option: For investors who want lower monthly payments early on, there's an interest-only option available (with some restrictions).
Buying through an LLC: Many investors prefer to hold rental property in an LLC for liability protection, and this program allows that.
No mortgage insurance: Unlike many owner-occupied loans, you won't be charged mortgage insurance.
Reserves matter: Lenders will want to see that you have savings set aside beyond just your down payment — generally a few months' worth of payments, plus more if you already own several other financed properties.
A Few Things to Note
If you're doing a cash-out refinance, you'll need to sign a statement confirming the money is for business purposes (like buying another property) — not personal expenses.
Gift funds for your down payment generally aren't allowed; the money needs to be your own.
Some states have rules around prepayment penalties (fees for paying off your loan early), so what's available can vary depending on where the property is located.
Is This Right for You?
Programs like Investor Plus tend to work well for investors who:
Have decent credit and some cash reserves
Are buying or refinancing rental property (not a primary residence)
Want flexibility, like the ability to close in an LLC or access cash-out equity for their next deal
If it sounds like a fit, the best next step is to talk with a loan officer. They can walk you through current rates, terms, and exactly what you'd qualify for based on your specific financial picture.
