Buying or refinancing an investment property requires a different mortgage strategy than an owner-occupied home. Whether you’re purchasing your first rental or expanding a real estate portfolio, the right financing can significantly impact your cash flow, tax planning, and long-term returns.
I work with real estate investors throughout Washington to structure investment property mortgages that support both short-term performance and long-term goals.
What Is an Investment Property Mortgage?
An investment property mortgage is used to finance a home not occupied by the owner. These properties are typically purchased to generate rental income or long-term appreciation.
Investment property loans are available for:
- Single-family rental homes
- Condos and townhomes
- Duplexes, triplexes, and fourplexes
- Short-term and long-term rental properties
- Vacation rentals (with guidelines)
Because investment properties carry more risk for lenders, guidelines differ from primary residence financing.
Common Investment Loan Options in Washington
Depending on the property type and your financial profile, investment property financing may include:
Conforming Investment Property Loans
- Available within county loan limits
- Competitive fixed and adjustable rates
- Typically require 15%–25% down. A lower down payment is possible if you’re buying a 2-4 unit and living full-time in one of the units.
- Strong credit and reserves required
- Seller contributions limited to 2% of the sales price, if negotiated in the purchase and sales agreement.
Jumbo & Non-Conforming Investment Loans
- Used for higher-priced investment properties
- Flexible structures for experienced investors
- May allow asset-based or alternative income documentation
- Often require larger down payments and reserves
- Seller-paid temporary buydowns possible.
Portfolio & Specialty Investor Loans
- Designed for more complex scenarios
- Useful for self-employed borrowers or multiple-property owners
- May allow DSCR (cash-flow–based) qualification
- Ideal for scaling rental portfolios
Each option has trade-offs—and choosing the right one matters.
Down Payment & Qualification Expectations
Investment property mortgages typically require:
- Higher down payments than primary residences
- Strong credit profiles
- Verifiable income and assets
- Cash reserves (often several months of payments)
Rental income from the property may be used to help qualify, depending on the loan type and documentation available.
Refinancing Investment Properties
Many Washington investors refinance to:
- Improve cash flow
- Secure a better interest rate
- Pull equity for future investments
- Consolidate multiple loans
- Adjust loan terms or strategies
Refinancing can be a powerful tool when used strategically—especially as property values increase.
Multi-Unit & House Hacking Opportunities
Some buyers start their investment journey by purchasing a 2–4 unit property, living in one unit, and renting the others. If you are truly occupying one of the units, you can use an FHA mortgage with minimum down or even a conventional mortgage with owner occupied rates and loan-to-value requirements.
Loan options vary depending on occupancy and unit count, and I’ll help you understand how to structure financing correctly from the start.
Why Work With a Local Washington Mortgage Advisor?
Investment property financing is nuanced, and small details can make a big difference over time.
I help Washington investors:
- Compare financing options across loan types
- Structure loans to support cash flow
- Navigate rental income guidelines
- Plan for portfolio growth
- Avoid common (and costly) mistakes
My approach is educational, strategic, and tailored to your goals—not one-size-fits-all.
Is an Investment Property Mortgage Right for You?
Whether you’re buying your first rental property or refinancing an existing investment, having the right mortgage strategy matters.
👉 Request an investment property loan quote
👉 Schedule a strategy consultation
👉 Explore financing options for rental properties
Real estate investing is a long game. Let’s make sure your mortgage supports the bigger picture.
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