Community Lending

You want to buy an investment property. We’ve got you.��Technically, you can buy an investment home with traditional financing. It's not for everyone, but if you can swing it, it's definitely an option.

The hardest part is qualifying for that second property while still having the one you live in. There are some creative ways to help you qualify. One such way is using the prospective property's rent money on your purchase application. Or, if the house you're looking to buy is currently rented and the lease carries over through the purchase process, you can use that lease as income to qualify.

And what about alternative financing? Yes, you can use those, too. A loan option that includes rental income can make qualifying easier. A DSCR loan is generally pretty simple. The ratio part is the income of your rental divided by the overall money you owe on the property. For beginner investors, DSCR loans help you qualify without having all of the upfront income. Really, this option doesn't even look at your personal income or employment history. On the other hand, if you're more experienced with several investment properties, you get the same advantages that a DSCR loan offers. You can qualify based on the potential rental income instead of your personal income. Pretty cool.

Another option is the Bank Statement loan. Verifying your income means looking at your actual bank statement rather than a W-2. This is great if you're a self-employed borrower like property investors can be.