Skip to main content

When looking for the perfect investment property loan, there are many different choices. It can be confusing to navigate the purchase or refinance process. At Newfi, we offer a unique investment property mortgage solution: business purpose loans! Let’s break down what a business purpose loan is, and why it could be the best option for your situation.

Business Purpose Loan

A business purpose loan is a mortgage for an investment property that qualifies borrowers based on their expected rental income. These loans are also referred to as Debt Service Coverage Ratio (DSCR) or private lender loans.

Why Would Someone Use a Business Purpose Loan?

Benefits of Business Purpose Loans

  • To Simplify the Loan Process

Unlike traditional investment property loans, business purpose loans simplify the loan process by requiring less documentation. With a business purpose loan, borrowers can qualify for investment properties based on the expected cash flow of the property. The lender determines the expected cash flow by estimating the rent the borrower will receive by the property’s location. There’s no proof of income, debt or employment required!

  • To Avoid Real Estate Portfolio Restrictions

With Newfi, borrowers can qualify for a business purpose loan even when they have multiple other real estate investments. We don’t place restrictions on the number of properties in a real estate portfolio. We like to help investors grow, so we allow for unlimited properties.

  • To Leverage Existing Equity Into A New Investment Property

Growing your real estate portfolio means thinking strategically about the next move. Our business purpose loan allows borrowers to take cash-out of an existing property in their portfolio and use that equity as reserves. Borrowers use this trick to free up cash to use towards their next investment property’s down payment.

  • To Refinance A Vacant Investment Property

Interested in doing a cash-out refinance to renovate one of your properties while no one is living in it? Need access to your equity when you don’t have a current tenant? No problem! At Newfi, we understand that the best time to get cash-out of your investment property for renovations or other needs isn’t always when the tenants are there. That’s why we offer refinancing on vacant investments!

  • To Finance An Airbnb or VRBO Property

Borrowers can use business purpose loans on both short-term and long-term rental properties—that includes Airbnbs and VRBOs! Whether you’re just starting to build your rental property empire or are expanding your rental portfolio, our loan program provides you with greater flexibility to finance your investments.

Newfi’s Unique Approach

Newfi's unique approach

At Newfi, we specialize in business purpose loans and offer investors like you faster closings & a simplified loan process to get your investment property deals done. We keep the mortgage journey transparent with great communication so that borrowers never feel like they’re on this journey alone.

Do you have questions about your unique situation? Interested in learning more about investment property mortgage options? Get a quote or talk to one of our senior loan advisors today at!

Not ready to take our word for it? Read any of our 1,300+ reviews and see what our past clients have to say!

Close Menu