
Residential Investments
Investment Property Loan: How to Secure the Best Financing for Real Estate Investments
Investing in real estate can be a lucrative way to grow wealth, but securing the right investment property loan is key to maximizing your returns. Whether you’re looking to purchase a rental property, or a commercial space, understanding your financing options and loan requirements can make all the difference. In this section, we’ll explore the types of loans available, qualification requirements, and tips to help you get the best loan terms.

Flexible Loan Solutions for Residential Investment Properties
Star Fund’s tailored long-term financing options are designed for residential real estate investors. Our specialized mortgage program provides fixed-rate loans for non-owner occupied properties, ideal for purchase, refinance, or cash-out transactions post-renovation. With a streamlined, low-documentation process, qualification focuses on the property’s income, loan-to-value (LTV) ratio, and credit score. Personal income verification is not required, ensuring a simplified approach to securing the funding you need for your investment properties.
Residential Loan
StarFund Lending Parameters: Non-Owner Occupied SFR, Condo, 2-4 Units, Condos, PUD’s, and Townhomes
General Guidelines
- Purpose: Purchase and refinance transactions up to 75% loan to value
- Loan Amounts: $100k – $10MM
- Term: 1 and 2 Year(s) Interest Only and 30 years fully amortized
- Credit Score: Minimum Score 650
- Foreign Nationals: No score required
- Prepayment Premium: 1 to 5 years step down prepayment penalty
- Lender Fees
- States Approved: See map attached
Underwriting Guidelines
- Funding: Within 15 days to 30 days
- Income Verification: No Income Verification
- Down Payment: Bank Statement only – No Seasoning
- Reserve Requirements: Proof of 3 months post closing reserves
- Appraisal Process: Streamline depending on state to state
- No ratio requirement

Minimum requirements for investment property loans
Company Documents Required
- Business Debt Schedule – And all notes for debit stated on debt schedule.
- Rent or Own? Business lease if applicable.
- (2) Months Business Bank Statements
- Articles of Incorporation.
- By laws ( If Incorporated ) or operating agreements if ( LLC )
- EIN Tax Certificate Letter
- Certificate of Good Standing
Borrower Information Needed
- Personal Financial Statement
- Resume
- Driver’s License
- Social Security Card
- Credit Authorization Form
What Is an Investment Property Loan?
An investment property loan is a type of financing used to purchase real estate that generates income, such as rental properties, vacation homes, or commercial spaces. Unlike primary residence loans, these loans carry stricter eligibility requirements and higher interest rates because lenders view investment properties as higher-risk ventures.
What is an investment property?
Essentially, it refers to a real estate asset purchased primarily for income generation, such as rental income, rather than personal use.
If you’re considering buying an investment property, you may want to explore various loan programs and types of conventional loans. You’ll typically need to work with a loan officer to navigate qualifying requirements and closing costs. Lenders typically offer options like a home equity loan or hard money loan, which can help you fund your purchase by leveraging home equity.
In the U.S., investment property mortgage rates can vary significantly. Many strategies, such as using home equity into cash, allow you to borrow against your existing assets. If you already own a current investment property, you can monitor its value over 12 months to estimate your potential gains. However, added risk is inherent in real estate investing, so consider the pros and cons before proceeding. Ultimately, knowing the percentage of your investment and how to get an investment property loan will be crucial for making the best option.
For those exploring non-qm options, lenders offer unique solutions that may suit your financial profile. When you decide to rent out your property, you’re not just generating income; you’re also building wealth over time. Keep in mind that mortgage interest can affect your returns, so it’s wise to thoroughly assess your finances and consult with professionals. In summary, understanding your options and how to navigate the real estate marketplace is key to successful investment property ownership.
How to get an investment property mortgage
To secure an investment property mortgage in the U.S, you’ll need to prepare thoroughly. First, consider partnering with a financial advisor or real estate expert who can guide you through the process. You’ll often use their insights to make informed decisions.
Once you’ve identified a property, it’s time to gather the necessary paperwork for your mortgage application. This typically includes income statements, tax returns, and details about your assets. Here’s where you’ll need to demonstrate your financial stability to get approval for the loan.

What counts as a real estate investment loan?
A property investment loan refers to real estate bought with the intention of earning rental income or profit through appreciation. It differs from a primary residence, which is the home you live in, and a second home, which is typically used for personal vacations.
Investment properties include:
- Single-family rentals
- Multi-family units (like duplexes or apartment buildings)
- Vacation rentals
- Commercial spaces
Properties occupied less than 14 days a year are also categorized as investment properties by the IRS for tax purposes.
How to Choose the Best Real Estate Investment Loan for Your Needs
Selecting the right loan depends on several factors:
1. Loan size: Larger properties may require jumbo loans or portfolio loans.
2. Interest rate: A lower rate can make the investment more profitable.
3. Repayment terms: Choose between a fixed-rate mortgage and adjustable-rate mortgage (ARM).
Minimum Requirements to Qualify for an Investment real estate loan
Star Fund llc has certain requirements for Investment real estate loans to reduce their risk. Below are the essential qualifications.
Down Payment Guidelines for Asset financing loan
- Most lenders require 15-30% down for the loan
- Some financing options, like portfolio loans, may offer flexibility with higher down payments.
- Tips: Use a cash-out refinance or HELOC if you need help covering the down payment.
Required Income Levels for Residential Loans
Lenders calculate your debt-to-income ratio (DTI) to ensure you can manage multiple loans.
- Max DTI: 43-50%
- Pro Tip: Include projected rental income to improve your DTI.
Cash Reserves Needed for Asset Loans
Lenders often require borrowers to have 6-12 months of mortgage payments in reserve to cover emergencies.
- Why it matters: Demonstrates financial stability to the lender.
- Pro Tip: Boost your reserves with savings from rental income or short-term investments.
Credit Score Requirements for Investors
A higher credit score translates into better loan terms.
- Minimum credit score: 650 (but 700+ is preferred)
- Tip: avoid new credit inquiries before applying.
Experience with Property Management and Its Impact
Lenders prefer borrowers with experience managing rental properties.
Pro Tip: If you’re new to real estate, consider working with a property manager to boost lender confidence.
Frequently Asked Questions (FAQs)
What Loan Document Confirms a Property as an Investment Property?
The loan agreement and mortgage documents will specify whether the property is classified as an investment property.
How Can I Get the Best Loan Rates?
- Improve your credit score before applying.
- Ask for loan options including SBA Loans.
- Consider a shorter loan term for lower rates.
How Many Investment Properties Can I Finance?
There is no strict limit, but lenders may impose limits based on your portfolio and ability to repay.
Make the Most of Your Property Loan
Securing the right loan requires planning, financial preparation, and an understanding of the different financing options available. Whether you’re investing in a single-family rental or a multi-unit complex, choosing the right loan terms can significantly impact your profitability. Be sure to contact us to lock in favorable rates, and maintain a strong financial profile to maximize your success.

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