Purchasing an investment property is one of the most reliable ways to build long-term financial security, but it comes with more complex lending rules than a typical home purchase. From larger down payment requirements to rent-offset calculations and stricter underwriting standards, your financing must be structured carefully to ensure strong cash flow and sustainable returns. We help you understand lender expectations, maximize qualifying power, and secure the most competitive terms available.
Residential Investment Properties
Owning a residential property that you would rent out & receive a rental income is one of the most common forms of real estate investing. Properties with 4 or fewer living units are considered residential. Typically, Investment Properties are not used as the investor’s primary residence. However, If you are living in one of the units, the property is then deemed owner-occupied and your down payment will be lower.
Commercial Investment Properties
Properties featuring 5 or more residential units are considered commercial. Commercial properties may hold businesses or a mix of residential and business suites. While the costs of maintaining these types of properties may be higher, those costs are usually offset by the higher income they generate.
Contact The Woollam Mortgage Team to help you navigate getting a great mortgage on your income property and:
- Determine if a fixed, variable, or adjustable mortgage is most suitable.
- Access low mortgage rates.
- Evaluate the pros and cons of a quick flip.
- Establish the pros and cons of owning a rental property.
- Decide if you will hold onto the property for the long-term.
Most lenders require at least 20% down for non-owner-occupied properties. This can increase based on the size of the property, rental income projections, and your overall financial profile.
Yes. Many lenders allow a portion of projected rental income—usually 50% to 80%—to be added to your qualifying income. This helps boost affordability, especially for multi-unit properties.
Typically, yes. Because rental properties carry more risk for lenders, rates can be slightly higher than primary-residence mortgages. We help you compare lenders to find the most competitive option.
Absolutely. Many investors use a refinance or HELOC to access equity for the down payment on an investment property. It’s a common and effective strategy for portfolio growth.
