Investment Property Mortgage Rates and Loan Requirements 2023

Darrin Seppinni
Written by:

No Doc Stated Income Guide – investment property loan requirements on the best selection of No Income Doc rental loan programs with the lowest investment property mortgage rates.

What are no-doc stated income investment property loans? 

Traditional mortgage loans usually aren’t a great fit for real estate investors – especially those whose earnings stem wholly from rental properties.

Since most investors take plenty of business-related deductions and write-offs, they minimize their reported income, making it significantly harder to qualify for a rental property loan – particularly the sizable ones needed to purchase an investment property in todays housing market.

Fortunately, these traditional loans aren’t the only option anymore, and investors now have access to “no-doc” rental loans.

The no-doc rental investment property loan is different than any other real estate investor loan program out there. It requires no income or employment documentation and instead are asset-based loans. They’re specifically meant for non-traditional earners like real estate investors. 


What can no-doc stated income rental investment property loans be used for?

Real estate investors can use no-doc rental loans both when purchasing a new property or refinancing
an existing one.

  • You need a sizable chunk of cash to cover an expense. You can also use no-doc rental loans for cash-out refinancing, which allows you to tap the equity in one of your properties and turn it into cash. This can help you cover the repair cost on the property or just go toward maintenance costs.
  • You want to buy a new rental property. You can also use cash-out refinancing to generate funds (i.e., down payment and closing costs) for your next investment property purchase. 

 

What are rental property mortgage rates like on no-doc stated income rental loans?

Interest rates on these rental loans depend on several factors, including the type of transaction (purchase vs. refinance), the down payment percentage on purchases and loan-to-value ratio on refinances, and your credit score.

The highest rates go to borrowers with small down payments and low credit scores. The best investment property mortgage rates are reserved for borrower’s high credit scores (720 and above), large down payments, or low loan-to-value ratios.


Investment Property Refinance Rates and benefits Investors can see big benefits from refinancing into a no-doc stated income investment property loan.

Smart real estate investors know the power of leverage, tap into your property’s equity with a cash-out option, use the funds for property improvements or buy your next investment property.

  • Market leading 30-year fixed rental property refinance rates
  • Interest only option, 40-year fixed term, 10-year initial interest only period
  • Cash-out up to 75% of property value
  • They offer competitive investment property mortgage rates, particularly if your credit score is high (think 720 or higher)
  • No doc stated income rental loans close fast, within 2-3 weeks

Lender questions to determine investment property interest rate quotes

BUYING - Questions:

Property type: Single family, Condo, 2-4 Units 
Are you under contract to purchase? Yes/No 
What is the purchase price? Dollar amount 
What percentage for down payment – 25%/30%/40%/50% 
What are the market rents for the property? 
Is the property currently being rented? Yes/No 
Will you be the only applicant?  
What are your credit scores? 760+/740/720/700/680/660 and below Do you plan on taking title as an individual or entity? Individual/Entity 

REFINANCE - Questions:

Property type: Single family, Condo, 2-4 units 
What is the estimated property value? 
What is the balance of an existing loan? 
What loan amount are you seeking? 
Will this refinance include cash-out? Yes/No
What are the annual rents for the property?
Is the property currently rented?
Is the property’s title in an individual name or entity?
What are your credit scores? 760+/740/720/700/680/660 and below 

The Bottom Line

Rental properties can be a great investment strategy, offering both passive and income streams depending on how you approach it. Now, with No-doc stated income rental loans like those at Homelife, the process isn't daunting, riddled with red tape, or costly, either.

Where to get a no-doc rental property loan:

If you’re considering a no-doc rental loan on your new investment purchase or refinance an existing property, you’ll want to seek out a mortgage professional that specializes in this type of financing. For one, these programs are not available through every lender or bank. Additionally, specialized lenders will have access to the widest variety of no-income doc investment property loans – not to mention the best rental property mortgage rates and most flexibility.  They can also help you pinpoint the best financing route for your unique scenario. They’ll analyze your personal needs, factor in your budget, calculate rental income and debt service-coverage ratios, and use their experience to ensure the highest chance of success with your property purchase or refinance.

Want to learn more about where to get the best selection of no income doc investment property loans, with the lowest investment property mortgage rates?

Get in touch with HomeLife Mortgage today.

Get a Rate Quote

 

No Doc Rental Loans eBook

We strive to make the loan process as streamlined and easy as possible for our borrowers. Download our free eBook below to learn:

Non Doc Rental Properties (Final)_Page_01-1

  • Exactly what no-doc rental property loans can be used for
  • Why your Debt Service Coverage Ratio (DSCR) matters
  • How your credit score will affect your down payment
  • What to do if appraised rents come in low

Get My Free eBook

 

 

More Content For You:

Why No Income Doc Rental Loans are Booming

Why No-Income Doc Rental Loans are Fast & Easy

Questions?

Click the live chat window on our site or call (888) 677-2526.  Our team is ready to assist you!

About HomeLife Mortgage

For more than 25 years, HomeLife Mortgage has built a strong reputation in California and Florida as a leading mortgage broker, servicing the needs of borrowers who have been unable to obtain conventional financing.  HomeLife Mortgage is at the forefront of non-bank lending offering the next generation of mortgages including Jumbo Loans, Real Estate Investor Loans, and Bank Statement Loans.

 

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