How To Get The BEST Loan As A Real Estate Investor
In this video, Tony Stephan interviews one of his favorite mortgage brokers to get her insights and industry secrets on how to get the best loan as a real estate investor.
The best loans for real estate investors depend on their investment strategy (e.g., fix-and-flip, buy-and-hold, commercial properties) and financial situation. Here are the most common and effective loan options, with their key pros and cons:
Conventional Loans
Best for: Buy-and-hold investors with good credit.
Pros:
Low interest rates.
Long terms (15โ30 years).
Cons:
Strict credit and income requirements.
Limited number of financed properties (usually up to 10).
Portfolio Loans
Best for: Investors with multiple properties or complex financials.
Pros:
Flexible underwriting.
Can finance multiple properties under one loan.
Cons:
Higher interest rates.
Shorter terms than conventional loans.
DSCR Loans (Debt-Service Coverage Ratio)
Best for: Buy-and-hold investors with rental income.
Pros:
Approval based on property cash flow, not personal income.
Great for full-time investors.
Cons:
Slightly higher interest rates than conventional.
Requires strong property performance (DSCR 1.2 ideally).
FHA or VA Loans (House Hacking)
Best for: New investors living in part of the property (e.g., duplex).
Pros:
Low down payment (3.5% FHA, 0% VA).
Low interest rates.
Cons:
Must live in the property.
Limits on property types and number of units (max 4).
Commercial Real Estate Loans
Best for: Large multifamily (5+ units) or mixed-use properties.
Pros:
Tailored to large-scale investments.
Can fund millions.
Cons:
Complex underwriting.
Higher down payments (20%โ30%).
HELOCs
Best for: Investors with existing equity in property.
Pros:
Low interest rates.
Flexible use of funds (rehab, down payments).
Cons:
Risk of losing your home if you default.
Variable rates (HELOCs).
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00:00 - Intro
01:16 Conventional loans
03:45 Who is Conventional For?
06:30 DSCR Loans
10:33 Working with lender
11:45 DSCR Foreign national
12:25 FHA
15:05 VA
15:42 - HELOC
17:59 - Recap on all loans
18:19 Outro
#realestateinvesting #realestate #multifamily #multifamilyrealestate #dscrloans #dscrloans #realestateinvestingforbeginners #realestatefinance
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By: Tony Stephan
Title: How To Get The BEST Loan As A Real Estate Investor
Sourced From: www.youtube.com/watch?v=SEa-WW0kUiI
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Did you miss our previous article...
https://jayconnerprivate.money/Real-Estate-Investing/the-housing-market-has-flipped-how-you-can-take-advantage