Investment Property Loan

What is an Investment Property Loan?

If you’re looking for a mortgage to purchase a commercial property that your business will use, you’ll need an owner-occupied commercial real estate loan. However, if you need financing for a property that is meant to make money, whether it will be leased or renovated and resold for profit, you’ll need an investment property loan—a customizable mortgage designed to be used to purchase income-producing properties.

What can an Investment Property Loan be used for?

Investment property loans can be used to finance a variety of income-generating properties:

• Commercial: properties to be leased or renovated for resale and commercially zoned or agricultural land to be developed, leased, or resold.
• Residential: single or multi-family properties to be rented or renovated for resale (‘flipped’) or residential land to be developed or resold.

How do you qualify for an Investment Property Loan?

Because of the associated risks of investment property management and renovation/resale, lenders often look for additional assurances that you will be able to cover your monthly payments. Investment property loans usually require larger down payment amounts of 25-30% or more. There may be less leeway with credit scores, and most lenders will like to see that you have sufficient cash reserves to pay for several months of mortgage payments in the event that a property may not be rented or resold on your expected schedule.

However, unlike other commercial loans, income requirements may have greater flexibility. Instead of relying only on current income for qualification purposes, you may be able to use expected rental income for approval.

Why Get an Investment Property Loan with Field & Main Bank?

At Field & Main, our lenders live and work in the communities they serve and are dedicated partners in the success of your venture. With Urgency & Care that you would expect from your local trusted advisor, we continually strive to meet your small business banking needs. We offer exceptional accessibility and availability, before, during, and after your loan closes, with direct lines of communication. And because we’re based right here in Central Kentucky, Western Kentucky, and Southern Indiana, you can take advantage of fast, local decision-making and in-person, one-on-one assistance, when you need it most.

Apply for an Investment Property Loan Today

Ready to take advantage of our competitive rates and dedicated, local service? Contact us for an investment property loan or visit one of our convenient branches in Henderson, Cynthiana, Evansville, and Lexington.