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Mortgage Glossary

Investment Property

Defined by Onias Derilus, Mortgage Capital ยท NMLS# 1859012 ยท Florida licensed mortgage broker

An investment property is real estate bought to generate rental income or appreciation rather than to live in.

What Investment Property means

It requires larger down payments (often 15โ€“25%), higher credit, and carries rates above primary-residence loans. DSCR loans qualify on rental income instead of personal income.

Florida example

A Florida investor buys a Tampa rental with 20% down and a rate about half a point above owner-occupied pricing. A DSCR loan lets the property's rent, not their W-2, carry the approval.

What it is

An investment property is a home you buy to rent out or resell, not to live in. Lenders treat it as higher risk than a primary home.

That usually means a larger down payment and a higher rate.

How to finance it

DSCR loans qualify on the rent, while conventional loans use your income. Each path fits a different investor.

We know Florida investor lending well. Reach out and we will find the right loan for your rental.

Related program: Learn more โ†’

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Official resources

Verify the details for your own situation against these government and agency sources: Freddie Mac Primary Mortgage Market Survey and Federal Reserve H.15 selected rates.

Related Mortgage Terms

ITIN LoanAn ITIN loan is a mortgage for buyers who use an Individual Taxpayer Identification Number. It works for people without a Social Security number.Joint TenancyJoint tenancy is a form of co-ownership in which two or more owners hold equal shares with a right of survivorship.Judgment LienA judgment lien is a court-ordered claim against a debtor's property arising from an unpaid legal judgment.
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