Conventional
Buyers with solid credit- Low down payment options for qualified buyers
- No mortgage insurance with a larger down payment
- Mortgage insurance can be removed as you build equity
Self-employed and investor loans
Financing for business owners and real estate investors
Bank statement loans, DSCR rental loans, multi-family purchases and cash-out refinances, matched to your plans by a loan officer who works with many lenders.
Self-employed
When your tax returns don't tell the whole story
Write-offs that lower your tax bill can also lower the income a traditional loan counts.
Business owners, 1099 contractors and commission earners have more than one way to qualify. A traditional loan uses your tax returns (how lenders count self-employed income). A bank statement loan looks at the deposits in your personal or business bank statements, often over 12 or 24 months, to show your income instead.
Tom isn't a tax advisor. Your CPA can tell you how write-offs and income timing fit your plans.
What to gather
- 12 or 24 months of personal or business bank statements, or two years of tax returns
- Proof your business is active, such as a business license or a letter from your CPA
- Photo ID and statements for the accounts you'll use for closing
Real estate investment strategies
Ways to buy, hold and grow
Whether it's your first rental or your tenth, Tom matches the loan to the strategy.
Buy your first rental
Conventional investment property loans and DSCR loans both finance single-family rentals. Tom compares payment, cash to close and reserves for each. Conventional vs DSCR for rentals, or financing a short-term rental.
Live in one unit, rent the others
Buying a 2 to 4 unit home you'll live in opens up FHA, conventional and, for eligible veterans, VA financing, and part of the expected rent from the other units may help you qualify. How 2 to 4 unit loans work, or add a unit with an ADU or in-law apartment.
Qualify on the property's rent
A DSCR loan compares the rent to the payment instead of using your personal income, so a growing portfolio doesn't depend on your tax returns. Conventional loans cap how many financed properties you can have, and DSCR loans can pick up where they leave off. How many financed properties you can have.
Cash out to fund the next deal
A cash-out refinance on a rental or your own home can turn equity into the funds for your next purchase or renovation. Compare it with a HELOC.
Fix and flip
Short-term fix-and-flip and bridge loans can fund the purchase and, with many lenders, part of the renovation, then you sell or refinance into a long-term loan. How fix-and-flip and bridge loans work.
Make the most of your budget
Tom lays out programs, seller concessions and rate buydown options side by side, so you know the real payment and cash to close before you make an offer.
DSCR loans
How a DSCR loan looks at a property
DSCR stands for debt service coverage ratio: the property's monthly rent divided by its monthly payment, including principal, interest, taxes, insurance and any association dues. Each lender sets its own minimum ratio.
Example only: rent of $2,400 a month against a $2,000 payment is a ratio of 1.2. Your numbers will depend on the property and the lender.
What lenders usually review
- Current leases, or the appraiser's estimate of market rent
- Property taxes, insurance and any association dues
- Cash reserves after closing
- Your credit, and entity documents if you buy in an LLC
Programs
Loans for business owners and investors
Elite Mortgage Group works with 45 lenders, so Tom can compare these side by side for your plans.
Bank statement loans
Self-employed borrowers- Qualify with personal or business bank statements
- No tax returns needed to show income
- Purchases, refinances and investment properties
DSCR investor loans
Real estate investors- Qualify on the property's rental income
- No personal income documentation
- Single-family and 2 to 4 unit rentals
Cash-out refinance
Homeowners with equity- Turn home equity into cash
- Consolidate higher-interest debt
- Fund renovations or your next investment
Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.
Questions
Investor and self-employed questions
Don't see yours? Call or text Tom or browse more answers.
Can I use Airbnb income to qualify for a mortgage?
Sometimes. Some conventional and DSCR lenders can count short-term rental income when it's documented, and others use long-term market rent instead. The rules differ by lender and program. How short-term rental financing works.
How many investment properties can I finance?
Fannie Mae allows up to 10 financed properties, counting your own home, on a conventional loan. DSCR lenders set their own limits, and many go beyond that. Conventional vs DSCR for rentals.
Can I buy an investment property in an LLC?
Many DSCR lenders allow you to close in the name of an LLC or other business entity, usually with a personal guarantee. Conventional loans are generally made to individuals. Tom can tell you which lenders fit how you want to hold the property.
Can rent from the property help me qualify?
Often, yes. A DSCR loan qualifies on the property's rent. On a 2 to 4 unit home you'll live in, FHA and conventional programs may count part of the expected rent from the other units.
I'm newly self-employed. Can I still qualify?
Many programs look for about two years of self-employment history, and some lenders accept less when you have prior experience in the same line of work. Tom can review your situation before you apply.
Do I need experience as a landlord for a DSCR loan?
Not always. Many DSCR lenders work with first-time investors, though some ask for more reserves or set other conditions when you haven't owned a rental before.
How do investment property loans compare with a loan on my own home?
Pricing is usually higher than for a home you live in, and lenders often ask for cash reserves after closing. Tom compares several lenders so you can see the trade-offs side by side.
Can I refinance a property I bought with cash?
Some programs let you take cash out soon after a cash purchase, which can free up money for your next deal. The rules vary by lender and program.
Planning your next property?
Tell Tom about the deal. No cost, no obligation and no credit pull to start.
Get a call back
A few quick questions, then Tom calls you.
