Investment Property Loan Options
Real estate investors have several loan options when purchasing investment properties. While conventional mortgage options are common, investors may benefit most from DSCR or fix-and-flip loans, depending on their investment strategy.
About DSCR Loans
Debt service coverage ratio (DSCR) loans are utilized by real estate investors to finance long-term rental properties, including office buildings, family homes, and multi-unit properties. Borrowers qualify based on the property’s DSCR, unlike conventional loan borrowers who qualify based on their personal income. DSCR measures the property’s ability to generate enough cash to cover the borrower’s debt.
Benefits
Generally a faster application process compared to the conventional loan process
Applies to multiple and different types of rental properties
No personal income verification, making it easier for investors to quality
Requirements
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A DSCR of 1.25 or higher, certified by the lender through a property appraisal
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Credit score above 630
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Down payment of at least 20%
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Minimum loan amount of approximately $100k
About Fix and Flip Loans
Fix and flip loans are designed for short-term financing. This product is best for investors who intend to buy, renovate, and flip one or multiple properties. There are several types of fix-and-flip loans available:
Home Equity Loans and HELOCs
Hard money loans
Business line of credit
Personal loans
And more
Benefits
Covers most of the property’s purchase cost as well as additional real estate expenses
Allows for fast financing with greater flexibility than other loan options
No long-term loan commitment
Requirements
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Down payment of 10-25% depending on your lender and eligible funding
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Minimum credit score of 620, though requirements vary by lender
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Documentation that includes business and renovation plans and a rehab budget
Secure Your Loan With Everest Lending
Ready to buy? Contact Everest Lending to determine which investment property loan is best suited for you. With over 25 years of home loan experience, our team guides you through your mortgage options and the application process, helping you secure funding for your new home.
Why Choose Everest Lending?
Wide Range of Loan Options
Personalized Assistance
Competitive Mortgage Rates
Virtual & In-Person Consultations
Service Areas
Trusted Mortgage Solutions Near You
Everest Lending proudly serves clients across Pennsylvania with a full range of mortgage and lending solutions. Whether you’re purchasing a new home, refinancing, or securing funding for a property investment, our trusted team is here to guide you every step of the way. And since we’re local, we can even attend closings in person to ensure everything goes smoothly.