Building wealth through real estate shouldn't be delayed by years of saving for a large down payment. You're taking the first step toward turning your investment dreams into reality. With the right financing strategy, you can start generating rental income sooner than you think.
”At NMHL, we work with borrowers in exactly this situation every day. We understand the uncertainty, the frustration, and the worry that comes with navigating a mortgage during a significant life event. You are not alone, and your situation does not have to be a barrier to homeownership.
Our licensed loan officers specialize in finding the right path forward for borrowers in complex circumstances. Whether your situation requires specialized documentation, alternative qualification methods, or simply a lender who takes the time to understand your full financial picture, we are here to help you move forward with confidence and clarity.
Your Path Forward
Proven Solutions for Your Situation
FHA House Hacking (3.5% Down)
Purchase a 2-4 unit property with FHA financing at 3.5% down and live in one unit while renting out the others. This strategy qualifies as owner-occupied, providing better rates while generating rental income.
Conventional Investment Loan (15% Down)
For single-family rentals, conventional loans require 15% down with strong credit and reserves. This lower-than-expected down payment can help you start investing sooner.
DSCR Investment Loan (20-25% Down)
For more complex investment scenarios, DSCR loans evaluate property cash flow rather than personal income. Typically requiring 20-25% down, these loans offer flexible qualification based on property performance.
Gift Equity for Family Property Purchases
When buying an investment property from family, the equity difference between sale price and appraised value can count as your down payment. This gift equity can eliminate the need for cash out of pocket.
Personalized Guidance for Your Situation
No two mortgage journeys are alike. Our experienced advisors take the time to understand your unique circumstances and find the best path forward.
What Our Clients Say
Real reviews from Google — no cherry-picking
Nationwide Coverage
Find Local Help in Your State
Our Presence
Click on endorsed states to see our direct resources!
Understanding Investment Property Financing Options
When it comes to financing investment properties, several options are available depending on your financial situation, credit score, and investment strategy. The key is finding the right balance between down payment, interest rate, and qualification requirements. At NMHL, we work with multiple loan programs to help you identify the most suitable financing solution for your investment goals.
For instance, if you're considering a multi-unit property, FHA loans can be an excellent choice, allowing as little as 3.5% down while still qualifying for owner-occupied rates. For single-family rentals, conventional loans might be more appropriate, typically requiring 15% down with strong credit.
Our experienced team can help you navigate these options and determine the best strategy for your investment property purchase.
Low Down Payment Strategies for Investment Properties
- FHA House Hacking: Purchase a 2-4 unit property with 3.5% down and live in one unit while renting out the others. This qualifies as owner-occupied, providing better interest rates.
- Conventional 15% Down: For single-family rentals, put down 15% with strong credit and reserves. This lower-than-expected down payment can help you start investing sooner.
- DSCR Loans: These cash flow-based loans typically require 20-25% down and are ideal for more complex investment scenarios or multiple properties.
Each of these strategies has its benefits and requirements. Our team can help you evaluate which option best fits your investment goals and financial situation.
Start building your real estate portfolio sooner with the right financing strategy.
Using Rental Income to Your Advantage
Rental income can play a significant role in qualifying for investment property loans. Certain loan programs, like DSCR loans, focus on the property's cash flow rather than your personal income. This can be particularly beneficial for investors with multiple properties or complex income situations.
Even with conventional loans, lenders may use rental income to offset your mortgage payment when calculating debt-to-income ratios. This can help you qualify for larger loan amounts or better terms. Our experienced loan officers can guide you through the process and help you maximize the benefits of rental income in your loan application.
Leverage your rental income to expand your investment portfolio.
Next Steps in Your Investment Property Journey
Now that you've explored your options for investment property financing, it's time to take action. At NMHL, we're committed to helping you achieve your real estate investment goals. Our team is ready to provide personalized guidance and support throughout the loan process.
To get started, simply contact us to schedule a consultation. We'll review your financial situation, discuss your investment strategy, and identify the most suitable loan options for your needs. With our expertise and your investment vision, you can confidently move forward with your real estate investment plans.
Take the first step toward building your investment property portfolio today.
Frequently Asked Questions
The minimum down payment varies by loan type. FHA allows 3.5% down for 2-4 unit properties if you live in one unit. Conventional loans typically require 15% down for single-family rentals with strong credit. DSCR loans usually need 20-25% down. Contact us to determine the best option for your situation.
Yes, certain loan programs consider rental income when qualifying for investment property loans. DSCR loans, for example, focus on the property's cash flow rather than your personal income. Conventional lenders may also use rental income to offset your mortgage payment when calculating debt-to-income ratios.
Investment property interest rates are typically 0.5% to 0.75% higher than primary residence rates due to the perceived higher risk. However, the rental income generated can help offset this difference. The interest is also tax-deductible as a business expense, providing additional financial benefits.
Yes, you can use a HELOC from your primary residence to fund the down payment on an investment property. The lender for the investment property will factor the HELOC payment into your debt-to-income ratio. This strategy can help you leverage your existing home equity to expand your real estate portfolio.
National Mortgage Home Loans (NMHL) specializes in helping investors with non-traditional income situations or those recovering from financial hardship. Our experienced team can guide you through various loan options, including conventional, FHA, and DSCR loans, to find the best fit for your investment strategy. We offer personalized pre-approval and consultation to help you move forward with confidence.
The pre-approval process typically takes 1-2 weeks, depending on the complexity of your financial situation and the loan program you're applying for. At NMHL, we streamline the process by having all required documentation ready in advance. Our team will work closely with you to gather necessary information and provide a pre-approval decision quickly, so you can move forward with your investment plans.