Best Loan Options for Investment Properties

If you already own your home and you are ready to take the next step into buying an investment property, you have four main loan options to choose from. There is the conventional investor loan, the bank statement loan, the DSCR loan, and the HELOC line of credit. Each one serves a different type of borrower, and the right one for you depends on your credit score, your income situation, how much you have saved, and what kind of property you are buying. I am going to walk through all four options with the requirements and the real numbers so you can see exactly where you fit.

Why These Four Loans?

About 20 to 25 percent of existing home sales in the United States are now made to investors, and that number keeps climbing. It is not just big companies buying up homes — it is individual people who understand the wealth-building power of rental real estate. If you own your home and you are ready to start accumulating investment properties, these four loan types are the traditional financing options that can get you there. I have helped buyers use each of them, and I will tell you straight up which one fits which situation.

Sincerely, Patrick Kevin Fagan