Getting a Loan for a Rental Property

At Luxury Mortgage, we strive to offer a variety of home financing opportunities to suit today’s real estate investors. If you’re looking for a loan for the purchase of a rental property, we invite to explore our offerings, from full documentation loans to bank statement loans and more.

Full Doc Mortgages for Rental Properties

Full documentation, or “full doc,” loans are a common type of mortgage that uses a borrower’s complete financial picture to determine qualification. All income and assets are accounted for and a credit check is performed. Specific requirements can vary by loan product and by lender, but most will require a minimum credit score, employment verification, and a limit to the number of financed properties.

One of the biggest benefits of choosing a full doc mortgage is the opportunity to snag a lower interest rate. Because full doc loans are less risky for lenders, the interest they charge for these loans are generally lower than those associated with low or no documentation mortgages. However, when choosing a loan for a rental property, full doc loans may carry even more restrictions, making it difficult for some borrowers to qualify.

Bank Statement Loans

While full doc loans can offer lower rates, the thorough and comprehensive documentation requirements may not be feasible for some borrowers. Those who are self-employed, full-time investors or whose income is variable throughout the year, may find it difficult to qualify for a full doc loan. The Bank Statement loan from Luxury Mortgage could be an ideal alternative.

This loan allows borrowers to use balances in their deposit bank accounts to qualify for the mortgage, instead of relying on W-2s or tax returns. The bank statements can be from the borrower’s personal or business accounts, giving extra flexibility. Additionally, this program allows a minimum credit score of 580, making it an ideal option for those with less-than-perfect credit histories.

Investor Cash Flow Mortgage

With the Investor Cash Flow loan from Luxury Mortgage, borrowers can use the cash flow on the subject property to qualify for the loan. Whether they have a tenant in place already or not, the anticipated cash flow can be used to qualify instead of traditional employment and income guidelines.

Another benefit to this program is that there is no limit to the number of financed properties. This allows investors who are already established continue to build their portfolio. Additionally, the 580 minimum credit score opens the program up to borrowers who may not have perfect credit.

Explore Other Options from Luxury Mortgage

Not seeing exactly what you’re looking for? Luxury Mortgage offers a wide selection of home loans to meet the needs of borrowers across many different scenarios. Explore our Simple Access Loan options, low money down FHA Mortgages, Condo Loans and more.