Jaime@mrmortgage.loans
Mon-Fri, 9am-6pm · Se habla español
Who I help
Building a rental portfolio.
One rental or your tenth, the right loan depends on the property and your plan for it. I own an investment property myself, so I look at every deal the way an investor does.
1-4
unit rentals
5+
units with commercial
DSCR
qualifies on the rent
LLC
closings, often
How I look at an investment deal
The right loan depends on the property as much as on you. These are the first things I want to know:
- What the property rents for, compared with its full monthly payment.
- Your plan for it: a long-term hold, a flip, or a short-term rental.
- What you have for the down payment and reserves.
- How you earn, and how many properties you already finance.
Ways to finance a rental
| Loan | Best for |
|---|---|
| Conventional | Strong personal income and the lowest pricing. Commonly 15% down for a single-unit rental and 25% for 2 to 4 units. |
| DSCR | Qualifying on the property’s rent instead of your income, often in an LLC. |
| Bank statement | Self-employed investors who qualify on their deposits. |
| Commercial | Apartment buildings with 5 or more units and mixed-use properties. |
| HELOC or cash-out | Using equity in a property you own toward the next purchase. |
Down payments and guidelines vary by program and by lender. These are common starting points, not promises.
Growing past a few properties
Conventional loans limit how many financed properties you can have, and every new loan looks at your full personal income picture again. DSCR loans qualify each property on its own rent instead, which is why investors often move to them as a portfolio grows.
Using the equity you have
Equity in a home or rental you already own can become the down payment on the next one. A HELOC or second mortgage lets you borrow against it while keeping the rate on your first mortgage. A cash-out refinance replaces the loan and hands you the difference. I will show you which one costs less for your plan.
I own an investment property myself, so I look at every deal the way an investor would: the rent, the payment, and what it takes to hold it.
Programs that fit
Four ways to finance a rental.
Which one fits depends on your income, the property and how many you already own.
DSCR and investor
Best for Qualifying on the property’s rent
- No personal income documents in most programs
- Often 20% to 25% down
- Can often close in an LLC
Conventional
Best for Strong personal income and lower pricing
- Commonly 15% down for one unit
- Commonly 25% down for 2 to 4 units
- A limit on financed properties
Bank statement
Best for Self-employed investors
- Qualify on 12 or 24 months of deposits
- Usually no tax returns to qualify
- Homes, second homes and rentals
Commercial
Best for Buildings with 5 or more units and mixed-use
- Apartment buildings and mixed-use
- Qualifies on the property’s income
- Terms vary by property
Common questions
Investors, answered.
With a conventional loan, commonly 15% for a single-unit rental and 25% for 2 to 4 units. DSCR loans often ask for 20% to 25%.
Yes. A DSCR loan qualifies on the rent itself, and a conventional loan can count part of the expected rent toward your income.
With a DSCR loan, often yes. Conventional loans are generally closed in your personal name.
Some DSCR programs accept short-term rental income, using the property’s history or a market estimate. Rules vary a lot, so bring your numbers.
Yes. Living in one unit of a 2 to 4 unit property can open FHA, VA and conventional options with a smaller down payment than a pure rental.
Next step
Run the numbers on your next deal.
Send me the property, the price and the rent. I will tell you which loans fit and what they take. Nothing here affects your credit.