Down payment
Investment-property financing commonly requires more equity than owner-occupied financing.
Investment property financing
Investment-property financing should be evaluated like an investment decision.
The mortgage is only one part of an investment property. Down payment, reserves, rent, operating expenses, financing cost, and exit strategy should be considered together.
Reserves
Programs may require additional liquid reserves based on the property and borrower profile.
Rental income
Eligible rental income may be considered under program-specific documentation and calculation rules.
Conventional financing
Agency conventional financing can be available for eligible residential investment properties.
DSCR lending
Certain non-agency programs focus more heavily on property cash flow than traditional borrower income, subject to program terms.
Return analysis
Financing should be evaluated alongside rent, vacancy, taxes, insurance, maintenance, management, and expected return.