If you are buying your first single-family rental property, now’s a good time to get an investment loan. Single-family rental loans have enormous advantages for specific circumstances when compared to conventional mortgage loans. First, they are based on cash flow — not personal income. And they are designed for people who plan on buying investment property and renting it out for a long time, which can give you financial stability and confidence.
Single Rental Loans are especially attractive to…
- Have a cash cushion. The more cash you are able to put into the deal, the lower the investment loan interest rates.
- Have a better-than-average credit score.
- Don’t want to provide proof of income. The lending decision is based on property cash flow.
These loans feature:
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Chances to break into the business
Investment property loans are available to both first-time and veteran landlords.
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Small loans for new landlords
The property must be worth at least $100,000 in order to qualify.
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Variable loan amounts
Depending on the value of the property, you'll be able to borrow between $75,000 and $2 million.
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Manageable cash-flow requirements
For properties worth $150,000 or more, a sub 1.00x Debt-Service-Coverage-Ration (DSCR) is allowed.
Frequently Asked Questions
We consider borrowers who are jumping into the rental investment pool for the first time, and we also have clients who own hundreds of rental properties. However, first-time homebuyers do not qualify for single rental loans.
Non-owner occupied: Single family residences, 2-4 family units, condos and townhouses. (5 to 20 unit multi-family rentals will only be considered as portfolio investments.)
Properties worth less than $100,000, manufactured housing, commercial-use properties, hotel/motels, even those with long-term tenants, and mobile homes.
Loans are not available in North Dakota, South Dakota, or Vermont.
Multi-family properties 30 years or older can’t be amortized for longer than 25 years.
No. These loans are for investment properties only. Properties financed with a single family loan also can’t be rented to a borrower’s family members.
You can borrow between $75,000 and $2MM, depending on the property and its location.
Calculators
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Mortgage Calculator
Using a mortgage calculator can help you calculate monthly payments on a home loan.
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Refinance Calculator
Use our refinance calculator to determine whether the costs of refinancing into a new home loan makes sense for your financial situation.
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Mortgage Affordability Calculator
Use our mortgage affordability calculator to see how much home you can afford.
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Why Finance of America Mortgage?
We’re not about pushing loan papers. We’re about moving your dream forward. And we do that through knowledgeable local advisors, a personal approach, and a variety of smart loan options.