Have your goals set on establishing a real estate portfolio? This might be your year! Interest rates are staying low, rental prices are on the rise and home equity growth continues to climb. But deciding to buy a rental property isn’t something to take lightly. There are a lot of factors to consider, and finding the right financing plan is a big one.

Investment Property Loans

Lots of mortgage lenders offer some form of investment property loans, but not all of these loans are the same. While some investment property loans require higher credit scores, higher down payments and proof of income and employment, there are other options that may be more flexible.

A non-QM investment loan may be a better alternative for some investors. With a non-QM loan, underwriting guidelines tend to be more lenient and borrowers may have the ability to use alternatives to income/employment to qualify. For example, we offer the Investor Cash Flow Mortgage, which allows borrowers to use the cash flow on the subject property to qualify. No employment or income verification is required and there is no limit to the number of properties financed.

Using the Investor Cash Flow Mortgage to Build a Real Estate Portfolio

With the Investor Cash Flow Mortgage, borrowers who are looking to get started in the real estate investment world can access competitively priced financing while using the current or anticipated cash flow on the property to qualify. In other words, if the home you’re interested in already has tenants in place who are paying $1,000/mo. in rent, you can use that cash flow towards your qualifications. On the other hand, if the home is not currently rented but you’ve done your research and you know you could rent it for $1,000/mo., you can use that projected monthly rent.

Other benefits of choosing the Investor Cash Flow Mortgage include…

  • borrow up to 80% of home value
  • credit scores as low as 580 considered
  • loan amounts up to $3,000,000
  • can be used to finance a variety of property types, including 1-4 unit properties, mixed-use, PUDs, warrantable condos, and non-warrantable condos on a case-by-case basis

Once you’re approved for an Investor Cash Flow Mortgage, you can use the monthly cash flow to pay your mortgage, insurance and taxes, save for repairs and build equity. Ideally, once you’ve built up enough equity and you feel comfortable in your role as a landlord, you can consider purchasing another property. Since there is no limit to the number of financed properties, the Investor Cash Flow Mortgage is ideally structured for investors who plan to own multiple investment properties.

Ready to Learn More?

Connect with one of our investment property lending experts at Luxury Mortgage today to explore your financing options. 

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