Mortgages for Investment Properties: What You Need to Know

Investing in real estate can be a powerful way to build long-term wealth—but financing an investment property isn’t quite the same as buying a primary residence. If you’re thinking about becoming a landlord or expanding your portfolio, there are key differences to understand before you apply for a mortgage.

At Rapid Home Loan, we specialize in helping real estate investors navigate the mortgage process with confidence. Here’s what you need to know before financing your next investment property.

💼 What Counts as an Investment Property?

An investment property is a real estate purchase you don’t plan to live in. Common types include:

Single-family homes
Condos or townhomes
Multi-unit properties (2–4 units)
Short-term vacation rentals

Whether you’re buying to flip, rent out, or hold long-term, the financing process is typically more strict than for a primary residence.

📊 How Investment Property Mortgages Are Different

Higher Down Payments
Most lenders require 15% to 25% down for investment properties. The exact amount depends on the property type and loan program.
Stricter Credit Requirements
A strong credit profile is key. You’ll generally need a credit score of 680 or higher to qualify for competitive rates.
Higher Interest Rates
Because investment properties carry more risk, lenders charge slightly higher interest rates compared to owner-occupied homes.
Proof of Rental Income (If Applicable)
If you plan to rent out the property, some lenders will allow you to use projected rental income to help qualify. This often requires a signed lease agreement or an appraisal with rental market analysis.

🧾 Loan Options for Investment Properties

At Rapid Home Loan, we offer a variety of mortgage solutions for investors, including:

Conventional Loans
The most common option, offering competitive rates and terms for 1–4 unit properties.
DSCR Loans (Debt-Service Coverage Ratio)
Designed for real estate investors, these loans focus on the property’s income potential rather than personal income—ideal for self-employed investors.
Portfolio Loans
Flexible loans offered by private lenders, perfect for investors with multiple properties or unique financial situations.
Cash-Out Refinance Options
Already own property? You might use equity from an existing property to finance your next deal.

🧠 Tips to Prepare for an Investment Property Mortgage

Boost Your Credit Score: Pay down debt and avoid opening new credit lines.
Document Your Finances: Lenders want to see steady income, savings, and liquid assets.
Plan for Reserves: Many lenders require 6 months or more of cash reserves for investment loans.
Work with a Broker Who Understands Investors: That’s where Rapid Home Loan comes in.

🏡 Why Work With Rapid Home Loan?

Real estate investing is a numbers game—and having the right financing strategy can make or break a deal. At Rapid Home Loan, we understand the needs of both new and seasoned investors. We’ll help you:

Choose the right loan structure
Understand cash flow and equity opportunities
Close quickly and efficiently so you don’t miss out on a good deal

📞 Ready to Invest Smarter?

Whether it’s your first rental property or your tenth, Rapid Home Loan is your trusted partner in building a real estate portfolio. Contact us today to get pre-approved and explore your options.

🔑 Let’s Make Your Investment Property Work for You

With the right mortgage and a smart strategy, your next property could be the start of long-term financial freedom. Reach out to Rapid Home Loan today—let’s make it happen.