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Mortgage Glossary

Investment Property

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · 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 15–25%), 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.

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Related Mortgage Terms

ITIN LoanJoint TenancyJudgment Lien
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