Rental Property Loans

Rental Property Loans Guide

With our investment rental property loan products, LenderFi.co is eager to aid you in expanding your real estate portfolio and success.

With an abundance of private lenders, LenderFi.co is able to provide turnkey solutions to real estate investors and developers that are not available through traditional, conventional lenders.

LenderFi.co Rental Loans Provide Real Estate Investors With:

  • Competitive interest rates
  • High LTV
  • A Quick and Easy loan application process
  • Flexible Documentation
  • Excellent Service
  • Fast Closings
  • High Leverage

Faster closings, better rates, better customer service at LenderFi.co

What is a Rental Property Loan?

Rental property loan programs provide real estate investors with the funds to purchase or refinance a property specifically used for renting out to tenants (long-term rentals) or short-term rentals, such as AirBnB or Vrbo.  

For a property to be able to qualify as a rental property, this residence cannot be the primary residence for the borrower and must be occupied by a tenant or used for short-term rentals.

Though it is typical for a rental property to be used for a long-term style rental, it is becoming more and more popular for investment rental properties to be specifically used for AirBnB, Vrbo, and other vacation rentals.

Investing in rental properties are a great way for real estate investors to build wealth and establish passive income.

What Type of Properties can Rental Loans Be Used For?

Rental property loans are able to finance single-family homes, duplexes, triplexes, quadplexes, multifamily units, townhomes, planned unit developments, condominiums, and other qualifying property types.

To elaborate, ‘single-family homes’ are defined as one housing unit with one family residing. On the contrary, multifamily homes are residential properties that contain more than one residential unit and family. LenderFi.co’s rental property loans DO qualify 1-4-unit residential buildings as “single-family homes”.

What Type of Investment Properties Can Rental Loans Not Be Used For?

One major requirement for rental property loans is that the property being financed is not the owner’s primary residence or considered ‘owner-occupied’.

In addition to residential rental properties, LenderFi.co provides rental property loans for the purchase or refinancing of commercial buildings through our Commercial Loan Programs.

How Does a Rental Property Loan Differ From a Conventional Mortgage?

Conventional, or traditional, mortgages are used to finance your primary residence, while a rental property loan is used to purchasing an investment property. The purpose of this investment property is to benefit from long-term capital appreciation and generate rental cash flow or passive income. Though originally used to buy commercial properties, rental property loans are now most often used to buy residential properties that will be used as tenant or vacation rentals.

While conventional loans are known for having a heavy emphasis on your credit score and personal income, rental property loan products use the potential income of the investment property in your qualification process. Hard money lenders and private equity lenders put the largest of focus on this aspect.

Rental Property Loans vs Conventional Loans – 4 Key Differences

PROPERTY TYPE

A rental property must be “non-owner-occupied” and fit into one of the rental property designations, while conventional loans are specifically designed for owner-occupied properties.

INTEREST RATES

Though historically investment properties, including rental properties, would typically have higher interest rates than conventional loans, the difference between the two loan types have continued to shrink in recent years.

DOWN PAYMENT

Conventional loans, usually secured through a bank, tend to have a significantly higher down-payment. As stated before, rental property loans through private equity or hard money lenders tend to be structured on potential income and upside and, with the availability of flexible terms, can have the down-payment minimized.

CREDIT SCORE

Similar to down-payments, conventional loans, lenders, and banks require a higher credit score and a lower debt-to-income ratio.

Why Choose a Private Money Lender for an Investment Property?

With the current volatility in the markets and banks beginning to meltdown, investors are finding more stability with private equity and hard money lenders.

Read more about the banking failures and its effect on real estate financing here! 

LenderFi.co can benefit you by offering:

  • Low Rates
  • Flexible Terms
  • Faster Approval
  • Flexible Documentation
  • High Leverage
  • Lower Down Payments

LenderFi.co also offers an abundance of interest-only loan products. Email or call to discuss you loan scenario. 

F.A.Q.

CAN I OBTAIN A RENTAL INVESTMENT PROPERTY LOAN WITH BAD CREDIT?

Yes! LenderFi.co has loan products with credit requirements from the 500s!

ARE RENTAL PROPERTY LOANS SUBJECT TO EARLY PREPAYMENT PENALTIES?

Investment loans are typically subject to prepayment penalties. However, loan terms vary.

HOW DOES THE RENTAL PROPERTY LOAN APPLICATION PROCESS WORK?

LenderFi.co has a quick, easy, and no-commitment application process! Complete your application in minutes and a LenderFi.co experienced loan officer will reach out to discuss your loan scenario!

HOW LONG DOES THE RENTAL PROPERTY LOAN PROCESS TAKE TO CLOSE?

LenderFi.co closes and secures loans in a fraction of the time it would take to close elsewhere! The quick and easy application, great customer service, and communication through every step of your financing journey makes the process much quicker and smoother!

WHY LenderFi.co?

With over 20 years of experience of nationwide lending, LenderFi.co is dedicated to providing great service and the best rates and terms custom tailored to your real estate scenario.

Founded in 1998, LenderFi.co has spent over two decades making your real estate financing easy!

High leverage, speed, and execution – our fix and flip and hard money loan programs are your secret weapon to scaling your investment business. Purchase, Rehab, Refinance, Cash out!

From single family to ground-up construction, hard-money, bridge loans, and stabilized 30- and 40-year loans. Lenderfi.co has all the right products for you to accomplish your real estate investment goals. Click or call to submit your loan scenario today!

How do I qualify?

LenderFi.co is your one-stop-shop to help you with financing!

Click to see if you qualify!

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Ryan Thaler

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We provides superior asset-backed investment solutions for individuals, institutional clients, family trusts and our own syndication/development partners.

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