What are No-doc Rental Loans, and Who are They for?

Darrin Seppinni
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Real simple qualifying Rental Property Loans for real estate investors

No-doc rental loans are mortgages designed just for real estate investors. They allow you to qualify without income documentation, tax returns, or other paperwork that’s typical of other loans.

Instead, qualification is based on the property — and the rents it brings in.

This can be a huge benefit to investors, who often have difficulty qualifying for traditional financing (especially if they maximize their tax deductions).

Are you looking to invest in a new rental property? Here’s what you need to know about this alternative loan option.

Why use a no-doc rental property loan?

No-doc rental mortgages are one of the best financing options for investment properties out there. They can also be used to refinance a mortgage on an existing investment property if you want to lower your rate, reduce your payment, or tap the home’s equity.

Either way, there are lots of benefits to using one of these no-doc investor rental loans, including:

  • There's less hassle. These loans require little documentation, making for an easier, quicker process on the whole.
  • You may qualify for more money. Because investors typically take many tax write-offs, their taxable income is very low. This can limit how much money they’re able to borrow with traditional financing.
  • They come with flexible terms. Choose from fixed-rate, adjustable-rate, and interest-only loans.
  • They offer competitive rates. Interest rates are competitive on these loans, particularly if your credit score is high (think 720 or higher). Rates start low as 3.875% range.
  • You can tap your home equity. You can use no-doc loans to do a cash-out refinance, too. Then, put the funds toward repairs, renovations, or a down payment on a new investment.
  • Loan limits are high. Our no-doc rental loans for investors go up to $5 million.

These real estate investment property loans can also be used for all types of properties, including single-family homes, townhomes, condos, and multifamily homes with one to four units.

How to get the best rates on a rental property mortgage

As with all mortgage products, interest rates on no-doc loans depend on a number of factors, including the type of transaction (purchase vs. refinance), the loan-to-value ratio, your credit score, and more.

Generally speaking, the highest interest rates go to borrowers who:

  • Do have a cash-out refinance
  • Have low credit scores
  • Have small down payments 
  • Have low debt service coverage ratios (rent divided by your projected mortgage payment)

The best rates, on the other hand, go to those who:

  • Have credit scores of 720 or higher
  • Make large down payments
  • Have low loan-to-value ratios 
  • Have high DSCRs 

Do you need a no-doc loan for a rental property purchase or refinance?

Then get in touch with HomeLife Mortgage today. We’ll get you preapproved in 24 hours or less.


More Content For You:

Rental Property Real Estate Investment Loans - No Income Documentation

Why No-Doc Rental Property Loans are Perfect for Real Estate Investors

Hard Money and Private Money Mortgage Loans for Real Estate Investors


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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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