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

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

Need to refinance or buy that next investment property? A no-documentation loan may be your best bet. Here’s how to get one.

Traditional mortgage loans can be a big hassle for real estate investors. They require countless
types of documentation, much of which is hard to come by (especially if you have multiple
income-earning properties in your portfolio).

They also require tax returns. And for many investors? Those returns don’t reflect the true income they’re earning, making it harder to qualify — or at the very least, more expensive.

Fortunately, there’s now another option in the mix: The no-income doc loan.

These innovative products give investors an affordable and hassle-free way to get financing — whether it’s to tap equity on an existing property or fund an entirely new investment.

Benefits of no-doc investment property loans

No-doc loans come with serious benefits for investors. Not only are they less of a hassle up front, but there are also long-term advantages as well.

Here are just a few of the benefits investors enjoy with a no-income doc loan:

  •  Tax returns and other financial statements aren’t necessary. For most investors, this makes both applying for the loan and qualifying for it easier.
  •  Less red tape and fewer hoops to jump through. The mortgage process is designed to be simple, streamlined, and more efficient.
  •  You get a low, fixed interest rate. This is ideal if you plan on holding your investment property for the long haul, as it ensures healthy cash flow.
  •  Loan terms are long. These loan programs last for 30 years, giving you plenty of time to build equity and profit off the property. 
  •  The title is flexible. Your property can be bought under an LLC, corporation, or other entity or your individual name.
  •  All property types are eligible, up to four units. Buy a single-family home, condo, or townhome — whatever offers you the best ROI.
  •  No rental lease is necessary. You don’t have to have a committed tenant in order to finance a rental property.
  • You can refinance after just three months. Take advantage of lower mortgage rates if the market drops, or use the current appraised value, and tap any equity you may need.

No-doc loans are also a good option for cash-out refinances. There’s no limit on how much you can take out, and you can use the funds to cover upgrades, repairs, renovations, or even the down payment on your next investment.

Qualifying for a no-doc loan

 If income documentation isn’t required on these loans, what is? First, there’s a credit check. Your interest rate is based on your middle credit score, as well as your down payment size and loan-to-value ratio. As with any loan, borrowers with the highest credit scores will qualify for the lowest interest rates.

An appraisal will also be required to determine the home’s value and market rent. The property’s market rent must be enough to cover your new mortgage payment, including principal, interest, property taxes, and insurance. It will also be used to determine what loan amount you’re eligible for.

With no-doc loans, the property is the main point of analysis. Your lender will want to ensure the home you’re purchasing is a sound property and that it can produce the income necessary to repay the loan. You shouldn’t have to include details on any other properties you own — nor their rents — in order to qualify.

Apply for your no-doc investment property loan today

Do you need a loan for your next rental property? Our no-doc investment mortgage program
might be for you. Get in touch today for a lightning-fast, 48-hour preapproval.

Need a bank statement loan?

If you’re considering buying a home but aren’t sure you’ll have the documents necessary for a traditional loan, then a bank statement mortgage could be for you. Get in touch today to learn more about these mortgages or to get prequalified.



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If you think you're ready for a Jumbo Bank Statement Loan of your own, learn more about how to qualify by downloading our free eBook, The Ultimate Guide for Self-Employed Bank Statement Mortgages.


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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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