Financing for your next rental.
Investors need a lender who understands rental income, multiple properties and self-employment. Whether you're buying your first duplex to live in or adding a tenth rental, we structure the loan around how you actually earn and how you plan to grow.
DSCR loans: qualify on the property, not your tax returns
A DSCR (debt service coverage ratio) loan looks at whether the property's rent covers its payment: principal, interest, taxes, insurance and any HOA. No W-2s, no tax returns and no personal income math.
- Built for investors. Works for single-family rentals and 2 to 4 unit properties, with short-term rental options through some lenders.
- Scales with you. No cap from your debt-to-income ratio, so self-employed investors and people with several rentals aren't boxed out.
- Close in an LLC. Many DSCR lenders let you take title in your business entity.
- Know the tradeoffs. Expect a larger down payment (often 20% to 25%), cash reserves and a higher rate than an owner-occupied loan. DSCR loans are for investment property only, not a home you live in.
House hacking: live in one unit, rent the others
Buy a duplex, triplex or fourplex, live in one unit and let the rent from the others help pay the mortgage. Because you live there, you can use owner-occupied financing with a much smaller down payment than an investment loan.
- FHA allows 3.5% down on 2 to 4 unit homes for most borrowers.
- Conventional allows as little as 5% down on 2 to 4 unit primary residences for qualified borrowers.
- VA lets eligible veterans buy up to four units with no down payment, as long as they live in one of them.
- Rent can help you qualify. Lenders can often count a portion of the other units' current or projected rent toward your income. On FHA 3 and 4 unit homes, the rent also has to pass a self-sufficiency test, and we'll run it before you make an offer.
- You'll need to move in and live there as your primary residence, usually for at least a year. After that, you can move out, keep it as a rental and do it again.
Everything else we finance
- Single-family rentals and 2 to 4 unit properties with conventional investment loans
- Second homes and vacation properties
- Cash-out refinances to pull equity for the next purchase
- Bank statement and 1099 programs for self-employed investors
Common questions
What is a DSCR loan?
A DSCR loan qualifies you based on the rental property's cash flow instead of your personal income. The lender divides the property's monthly rent by its monthly payment (principal, interest, taxes, insurance and HOA). A ratio around 1.0 or higher, meaning the rent covers the payment, is what most lenders look for, though some go lower. No tax returns or W-2s are required.
What is house hacking?
House hacking means buying a 2 to 4 unit property, living in one unit and renting out the others so the rent helps cover the mortgage. Because it's your primary residence, you can use FHA (3.5% down for most borrowers), conventional (as little as 5% down for qualified borrowers) or VA (no down payment for eligible veterans).
Can rental income help me qualify?
Often, yes. Depending on the program, we can use current leases or the property's projected rent to help qualify. On a DSCR loan, the rent is the qualification.
Program availability, terms and eligibility depend on the lender, your credit, income, property and location. Not all borrowers will qualify.
Other ways we can help
Purchase
FHA, VA, USDA, conventional and jumbo, plus down payment assistance for first-time buyers.
Home purchase loans →Refinance
Free, no-pressure refinance analysis. We let the numbers do the talking, and we'll tell you if it doesn't pencil.
Refinance →Investment property
DSCR loans that qualify on the rent, house hacking a 2 to 4 unit, second homes and self-employed programs.
Investment property loans →Commercial
Business-purpose financing for commercial property, structured around the deal in front of you.
Commercial loans →