Investment Property Loans
Real estate offers competitive risk-adjusted returns and is one of the most effective ways to build long-term wealth, generate passive income, and diversify an investment portfolio. And whether purchasing a first rental property or expanding an existing portfolio, buying investment property in Florida remains an attractive opportunity for investors in and outside the country.
Based in Fort Lauderdale, Fair Mortgage Lending helps real estate investors from anywhere secure financing for investment properties throughout Florida while also working with buyers nationwide who are purchasing investment property in the Sunshine State.
South Florida's Investment Edge
South Florida (especially Fort Lauderdale and Miami) is among the nation’s most desirable real estate investment markets due to steady population growth, year-round tourism, a strong rental market, and potential for both long-term appreciation and consistent rental income. It’s also home to a wide range of investment property financing solutions, including DSCR loans, Non-QM financing, and other flexible loan programs designed to fit different investment strategies.
Featured Non-QM Loan
DSCR Loans
DSCR loans, a type of Non-QM loan, are a popular financing option for real estate investors because qualification is based primarily on a property’s rental income potential, rather than a borrower’s personal income. They can be an excellent fit for investors purchasing long-term rental properties or short-term Airbnb or VRBO properties, and feature a streamlined approval process that makes it easy to grow your real estate portfolio while focusing on future earning potential.
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Loan Programs
Conventional
A conventional loan is a mortgage loan that is not backed by a government agency; instead, it is available and guaranteed through the private sector (Fannie Mae and Freddie Mac). It is one of the most common options for financing investment properties.
General characteristics to know:
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Down Payment: The minimum down payment for an investment purchase is 20%.
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Private Mortgage Insurance: No mortgage insurance is required.
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Occupancy: Investment property.
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Income: Must have income verification through Paychecks/W2s or Tax Returns (Self-Employed), Awards Letters, Pensions, etc.
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Debt-to-income Ratio (DTI): Compares how much the borrower owes each month to how much they earn. It's the percentage of monthly minimum debt payments divided by the gross monthly income. For conventional loans, the DTI, including the new mortgage payment, cannot be higher than 50% of monthly gross income.
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Credit Score: Highly impacts the interest rate and overall loan pricing. It is possible to get approved for a conventional loan with a credit score as low as 620, though some lenders look for a score of 660 or better. Because this program requires a 20% down payment, private mortgage insurance is generally not required.
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Interest Rates: Depend on factors such as credit profile, down payment, loan amount, and the type of investment property.
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Loan Limits: Conventional loan limits change every year. In 2026, the limit was raised to $832,750 for a single-unit property. Borrowers will need a jumbo or Non-QM loan to purchase a more expensive property, with exceptions if the property is located in a high-cost area.
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Loan Terms: Conventional loans typically have 30-year terms, but it is possible to qualify for flexible 10, 15, 20, or 25-year terms.
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Units: The property can be from 1 to 4 units. Loan limits and qualification criteria may vary depending on the number of units.
Non-QM
A Non-QM (non-qualified mortgage) loan offers flexible qualifications for borrowers who don’t fit traditional lending guidelines. Instead of relying solely on income verification, Non-QM loans use alternative documentation to offer financing designed for self-employed borrowers, real estate investors, and others with unique financial situations. For many investors, Non-QM loans provide a practical path to purchase when a conventional loan isn’t the right fit.
Non-QM Mortgage Benefits
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Financing options for primary residences, second homes, and investment properties, depending on the program
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Many Non-QM programs can use alternative documentation instead of traditional tax returns
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Certain investment-property programs may rely on the debt-service coverage ratio (DSCR) and property rental cash flow rather than the borrower’s personal income documentation
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Greater underwriting flexibility
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Flexibility on income calculations
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Flexibility on job history requirements
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Down payments may start at 10% for eligible borrowers
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Flexibility on credit scores, with a higher impact on the interest rate and loan-to-value ratio
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Potential consideration of eligible long-term or short-term rental income, including Airbnb and VRBO income, subject to underwriting and property requirements
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Financing options for primary residences, second homes, and investment properties, depending on the program
Non-QM Mortgage Products Available
Non-QM loans are designed to be flexible and often evolve according to market conditions. As a result, available loan products, qualification guidelines, and program features may change over time.
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Bank Statement Loans
For this Non-QM program, bank statements are the only document required to verify income. Borrowers can qualify with as little as three months' bank statements; however, the most popular programs are the 12-month or 24-month bank statement loans. This loan is often a good solution for self-employed borrowers, business owners, realtors, consultants, and entrepreneurs.
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DSCR (Debt-Service-Coverage-Ratio) Loans
DSCR investment loans allow investors to build their real estate portfolio with fewer hiccups. The Debt-Service-Coverage-Ratio loan uses the property's rental income to qualify and does not consider the borrower's income. The ratio is calculated by dividing the property rental's annual net operating income by its total annual debt service payments. If the DSCR is 1.0 or higher, it is generally accepted by the lenders. If it is lower than 1.0, some exceptions must be considered to qualify.
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Foreign National Loans
A foreign national loan is designed for non-U.S. citizens looking to purchase a home in the United States. There is no need for a valid Social Security number, U.S. FICO score, or Individual Tax Identification Number (ITIN). To qualify, borrowers will need only a valid passport and down payment (usually 30% of the purchase price), as well as coverage for closing costs.
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ITIN Loans (Individual Taxpayer Identification Number)
An ITIN mortgage loan is a type of mortgage loan specifically designed for individuals who do not have a Social Security number. Instead, they use their Taxpayer Identification Number (ITIN) as the primary form of identification. Documentation and credit requirements vary by lender, but generally include tax returns, profit & loss statements, bank statements, or seasoned assets to document income.
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Interest-Only Home Loans
There are interest-only home loans on 40-year fixed loans, 30-year fixed loans, 7/1 ARMs, and 5/1 ARMs. You will only pay the interest during the first 10 years of the loan, providing significant savings over the life of the loan. Note that you will not be paying down the principal balance during the interest-only period.
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Recent Credit Event Loans
Recent credit events such as foreclosure, short sale, or bankruptcy don’t necessarily prevent you from financing an investment property. Flexible loan programs are available for borrowers with recent credit events, and loan options often improve as time passes.
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Commercial Rental Property Loans
There are a variety of loans built explicitly for the needs of real estate investors who want to expand their portfolio to include single-family homes, 2 to 4-unit properties, condos, townhomes, multi-use, and multifamily five or more-unit properties.
Down Payments Considerations When Buying Investment Property
Investment loans may require a higher down payment than traditional home loans. The exact down payment for an investment property depends on factors such as the loan program, property type, occupancy, and overall borrower profile. Conventional, DSCR, and Non-QM investment loans may all have different down payment requirements, so working with an experienced lender is important to identify the financing option that best aligns with your investment strategy.
Can You Use a VA Loan for an Investment Property?
Typically, no, a VA loan cannot be used to purchase an investment property. VA loans are intended to help eligible veterans, active-duty service members, and qualifying military families purchase a primary residence. In some situations, a VA loan may be used to purchase a multi-unit property if the borrower occupies one of the units as their primary home. Contact our team for guidance if you’re unsure whether your purchase may qualify.
Why Investors Choose Investment Property Loans
With the right financing, new and established U.S.-based real estate investors can purchase rental properties or multi-unit buildings while preserving capital for other investment opportunities. Some of the key benefits of investing with these flexible loan products include:
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Cash flow: Generate ongoing cash flow through long-term leases or short-term vacation rentals, and offset ownership costs while building wealth over time.
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Appreciation potential: Market conditions vary; however, real estate investments often increase in value and may create opportunities for equity growth and future returns.
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Tax benefits: Investment property owners may qualify for tax advantages such as deductions for mortgage interest, property taxes, insurance, maintenance and other eligible expenses.
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Investment leverage: Financing allows investors to purchase real estate without paying the full purchase price upfront, preserving cash for improvements or other investments.
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Passive income potential: Rental income can provide an additional income stream while your property appreciates.
Serving Real Estate Investors Nationwide
Fair Mortgage Lending is based in Fort Lauderdale and proudly licensed to serve real estate investors throughout Florida, including Miami, Tampa, and Boca Raton, as well as clients across all U.S. states. Bilingual support is available in Spanish and Portuguese to better serve a diverse range of borrowers.
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