Investment Property Loans
Learn more about the different investment property loan options and decide which program is best for financing your next investment property.
- Flexible financing for investors
- Grow your portfolio and build wealth
- Finance all types of properties
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Benefits
Benefits of Investment Property Loans
Earn passive income:
An investment property provides you with an additional income stream and it doesn’t necessarily have to be a full-time job.
Benefit from home appreciation:
Real estate tends to appreciate in value over the years, and that appreciation helps you build wealth.
Diversify your portfolio:
Real estate can help diversify your investment portfolio and hedge against risk if other investments don’t go your way.
Hedge against inflation:
Compared to other types of investments, real estate tends to keep pace with inflation, making it a good hedge against inflation and fluctuations in the market.
Enjoy tax benefits:
In many cases, you can enjoy certain tax breaks as a result of investing in real estate.
How it Works
What Is an Investment Property Loan?
An investment property loan will help you purchase homes that you can then use to rent out or flip for profit. With an investment property mortgage loan, you can build a residential or commercial property portfolio and generate new income streams through real estate.
Griffin Funding offers investment property loans for those interested in buying or refinancing rental properties and second homes, whether it is a:
- Single-family home
- Condominium
- Planned unit development (PUD)
- Multifamily (2-4 unit) dwelling
Key Investment Property Loan Features
- Flexible qualification options for investors
- Loan programs based on income, assets, and property cash flow
- Purchase and refinance options available
- Access short-term or long-term financing
- Nationwide investment property financing programs
Loan Types
Investment Property Loan Types We Offer
Conventional loans for investment properties are typically set up as fixed-rate mortgages with standard terms for borrowers. While conventional loans will come with higher rates when used for an investment property rather than a primary residence, they still offer highly competitive rates. However, qualification requirements can be rigid, especially if you don’t have a W-2 job.
A DSCR loan enables you to qualify based on your property’s cash flow and not your personal income. It is an easy way to expand your real estate portfolio because it allows us to determine your ability to make payments without needing your tax returns or W-2s.
A bank statement loan caters to self-employed borrowers. While many mortgages require borrowers to provide proof of income in the form of tax returns or W-2 forms, bank statement loans allow self-employed borrowers to submit a series of bank statements as proof of income instead. This investment property financing option provides self-employed borrowers with a great deal of flexibility when it comes to qualifying.
VA loans can be used for investment properties in certain cases. A VA loan can only be used for homes up to a maximum of four units, and you must occupy one of the units. If you purchase a multi-unit property, you have the option of renting out the unused units for rental income. 2-4 unit properties have higher VA loan limits than single-family homes. If structured properly, you can use a VA loan to buy a 2-4 plex investment property with zero down payment.
FHA loans are intended for buyers of a primary residence. The borrower must live in the home for the majority of the year. However, after one year of ownership, you may be able to move out and rent the home if you need to move or the house becomes too small.
If you’re already a homeowner, you can leverage your current home equity to purchase an investment property by using a home equity loan (HELOAN). A HELOAN, otherwise known as a second mortgage, is a type of loan that’s secured by the borrower’s existing home equity. You can use the funds you get from a HELOAN to finance the purchase of an investment property or make upgrades to an existing rental property.
If you have low or unsteady income but significant assets, then an asset-based loan may be right for you. With an asset-based loan, you can qualify for investment property financing using your liquid assets rather than undergoing traditional income verification processes.
Investment Property Loan Calculators
DSCR Calculator
Calculate your DSCR and see what this type of rental property financing could look like.
Bank Statement Loan Calculator
See how much you could potentially afford with a bank statement loan.
Capital Gains Tax Calculator
Quickly estimate your capital gains and capital gains tax upon selling a property.
Where We Lend
Griffin Funding is a nationwide investment property lender. Use the map to explore investment property financing options in your state or reach out to learn more about how to get a mortgage for a rental property.
Frequently Asked Questions
The first step in getting a loan for a rental property is to determine your goals and come up with an investment strategy. After you have a strategy, work with an investment property lender to identify a loan type that aligns with your goals and submit an application.
To get the best investment property mortgage rate in 2026, shop around for the right lender and strengthen your financial profile. Several factors can impact the terms of your loan and the investment property mortgage rate you qualify for, such as:
- The size of your down payment
- How good your credit is
- The property’s projected rental income
- The value of the property that you intend to buy
- The type of investment property loan you choose
Also remember that the lowest investment property mortgage rate doesn’t always make for the best experience. It’s important to partner with a knowledgeable lender who can work with you through the lending process and properly address your needs.
An investment property lender like Griffin Funding can help you determine whether you qualify for a mortgage based on our own investment property loan requirements and provide you with a quote for loan terms.
Yes, you can refinance an investment property loan. Common refinancing solutions for investment properties include:
- Rate-and-term refinance: Lower your mortgage rate or alter your loan term.
- Cash-out refinance: Replace your current mortgage with a bigger loan and pocket the difference in cash.
- DSCR refinance: Qualify for a cash-out refinance based on your investment property’s cash flow rather than personal income.
- Bank statement loan refinance: Qualify for a refinance loan based on bank statement rather than tax returns or pay stubs.
Borrowers should expect to put down a minimum of 15-25% of the loan amount for an investment property loan. The exact down payment requirement will depend on the loan type, the property being financed, and the borrower’s financial profile.
Use our free down payment calculator to see how adjusting your down payment can impact your budget.