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INVESTOR LOANS

Your Quick Guide to Funding Real Estate Growth
Whether you're flipping, holding, or scaling your portfolio, this guide breaks down the four most popular loan types every investor should know — and how to choose the one that fits your goals.

1️⃣ DSCR (Debt Service Coverage Ratio) Loans

Best for: Investors who want to qualify based on property cash flow, not personal income.

How it works:

The lender looks at the property’s projected rent vs. its monthly payment (principal, interest, taxes, insurance, HOA).

  • If rents cover or exceed the payment (DSCR ≥ 1.0), you’re typically good to go.
  • No personal income verification, W-2s, or tax returns needed.

Why investors love it:

✅ Simplified approval — based on the property, not you
✅ Ideal for self-employed or multiple-property investors
✅ Can close in the name of an LLC

Downside:

  • Slightly higher rates than traditional loans
  • Usually 20–25% down
  • Best for long-term holds (not flips)
  • Property location and condition matters

2️⃣ Fix & Flip / Fix & Hold Loans

Best for:

Buying distressed properties, renovating them, and selling or renting them out.

How it works:

Short-term financing (typically 6–12 months) that covers both the purchase price and rehab costs.

  • “Fix & Flip” = Sell for profit after renovation
  • “Fix & Hold” = Refinance into DSCR or traditional loan to keep as a rental

Why investors love it:

  • ✅ Fast approvals and funding — great for competitive markets
  • ✅ Funds repairs and improvements
  • ✅ No appraisal
  • ✅ No income documentation

Important Notes:

  • Minimum Down Payment is 10% of Purchase Price + Rehab Cost (could be more depending on borrower/contractor experience and credit)
  • Max Loan To ARV (after rehabilitated value) is 70%

Downside:

  • Higher interest rates (short-term risk = higher cost)
  • Usually requires experience or a strong contractor plan
  • Exit strategy (sale or refinance) must be clear
  • No "rural" properties. Must be in an urban area.

3️⃣ Hard Money Loans

Best for:

Short-term financing when speed, flexibility, or credit issues matter more than rate.

How it works:

Private or small-fund lenders offer cash quickly (sometimes within days). They care more about collateral (property value) than your credit.

Why investors use them:

  • Extremely fast closings
  • Minimal documentation
  • Can fund unconventional or time-sensitive deals

Downside:

  • High interest rates (10–14%+ common)
  • Short repayment period
  • Meant as a bridge to longer-term financing (like DSCR or traditional loans)

4️⃣ Traditional Investment Loans (Fannie Mae / Freddie Mac)

Best for:

Investors with solid income and credit who want the lowest long-term rates.

How it works:

Conventional loans underwritten through Fannie/Freddie standards, using your personal income, credit score, and debt-to-income ratio (DTI).

Why investors choose it:

  • Lowest interest rates and best long-term terms
  • 15–30 year fixed options
  • Great for first or second investment properties

Downside:

  • Max of 10 financed properties per borrower
  • Must verify personal income and meet DTI limits
  • Limited flexibility on property type (no heavy fixer-uppers)

🧭 Choosing the Right Option

Next Steps

Schedule an Investor Strategy Call

We’ll review your goals and find the best loan type to match.

Get Pre-Approved

Know your buying power before your next deal hits the market.

Start Building Your Portfolio

One property at a time or several at once — we’ll create a plan that fits.

📩 Let’s get your money working for you.
I’ll help you leverage your income, equity, or cash reserves to start (or grow) your investment portfolio with confidence.

HAVE QUESTIONS?

Do you have questions or a scenario you wish to discuss before proceeding?
No problem! You can call, text or email me anytime!

425-753-4247

About Me:

My name is Melissa Holt and I've been helping clients with home financing since 2001! I was a bank and retail lender for over 22 years and I now run my own broker business so I can help even more families! If you wish to learn about benefits of working with a broker, click HERE.

When I'm not working, I'm running between soccer practices and games, camping, visiting with friends or working on home projects. I love music and dancing! My passion is people and puzzles are my game!

Melissa J. Holt; NMLS #331083; [email protected]
Empire Home Loans, Inc. NMLS #1839243

PHONE: (425) 753-4247

Empire Home Loans, Inc., NMLS ID#1839243, CA DRE# 02086593, CFL License #60DBO-95315, AZ Lic: MB-1012019. Refer to www.nmlsconsumeraccess.org to see additional licensing information. The corporate office address is 4401 Hazel Ave., Ste. 135, Fair Oaks, CA 95628; www.empirehomeloans.com. This communication is for informational purposes only. This is not a commitment to lend. All programs are subject to change or cancellation at any time and without notice. Empire Home Loans, Inc. supports equal housing opportunity.