The lender will focus on your experience as an investor and your overall strategy, rather than placing heavy emphasis on your income, assets, and job history. Like a traditional loan, they will still review your credit, conduct an appraisal, and initiate the title process. Our platform streamlines the journey with clear guidance, user-friendly application steps, and state-compliant financing options, making it easier to secure rental property loans, vacation rental financing, or commercial real estate funding.

Rather than placing heavy emphasis on your income, assets, and job history, the lender will prioritize your experience as an investor and your overall strategy. However, just like with a traditional loan, they will still review your credit, order an appraisal, and initiate the title process.

Key Differences

Larger Down Payment

Investment property loans typically require a larger down payment, usually around 25%, though this can vary based on your credit score. In comparison, conventional home loans may require as little as 3%, especially with government-backed programs. Our platform simplifies the process, providing clear guidance, intuitive application steps, and state-compliant financing options, enabling investors to confidently secure rental property loans, vacation rental financing, and commercial real estate funding.

Higher Interest Rates

Rates for investment property loans are generally higher than those for conventional mortgages. They tend to be between 100 to 400 basis points higher. For example, if the rate on a traditional mortgage is 6.5%, an investment loan might come with a rate of 7.5% or more.

Cash Reserves

You'll likely need to demonstrate that you have liquid reserves to cover the down payment, closing costs, and 6-12 months of principal, interest, taxes, insurance, and any association fees. If you own other investment properties, some lenders may also require proof of reserves for each one. Conventional home loans typically require fewer reserves, ranging from none to six months.

Less Personal Documentation

For a traditional mortgage, lenders usually request detailed information about your employment history and personal income, including pay stubs and tax returns. Right before closing, they may ask you to confirm your employment status.

*With some investment property loans, this personal documentation is still required, especially if you already own other properties. However, other types of investment loans focus more on the income generated by the property itself, which simplifies the paperwork.