Business Purpose Loans for Real Estate Investors
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.
What Is a Business Purpose Loan?
A business purpose loan is a mortgage for an investment property that qualifies borrowers based on expected rental income rather than personal income. These loans are commonly referred to as DSCR loans. Learn more about how they work on our DSCR Loans page.
Why Use a Business Purpose Loan?
To Simplify the Loan Process
Unlike traditional investment property loans, business purpose loans simplify the process by requiring less documentation. With a DSCR loan, borrowers can qualify based on the property’s expected cash flow, which is estimated by market rent in the property’s location.
Typically, no personal income, employment, or debt documentation is required—making the process faster and more accessible. Check out our guide on DSCR loan requirements to learn more about what you’ll need.
To Avoid Real Estate Portfolio Restrictions
With Newfi, investors can qualify for a business purpose loan even if they already own multiple investment properties. 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. Discover more DSCR loan benefits for seasoned real estate investors.
To Leverage Equity Into Your Next Investment Property
Growing your real estate portfolio means using your existing equity smartly. Our business purpose loan allows you to take cash-out of an existing property and use that equity as reserves for a new purchase. This strategy frees up capital for your next investment property down payment.
Explore our DSCR cash-out loan options to see how you can unlock equity to invest again.
Check Out Our DSCR Calculator!
Our DSCR Calculator makes it easy to run different scenarios and provide estimated loan terms based on your inputs.
Refinance an Investment Property Without a Tenant
Wondering if you can refinance a rental property that’s currently vacant? The answer is yes, with a business purpose loan, you don’t need an active tenant to qualify. Traditional lenders may require current lease agreements or rental history, but we understand that sometimes the best time to access equity is between tenants, especially when you’re renovating or repositioning a property.
At Newfi, we offer solutions designed for real estate investors who need flexibility. Learn more about how to refinance an investment property without a tenant and unlock equity on your terms.
Use a DSCR Loan to Finance an Airbnb or Short-Term Rental
Short-term rentals like Airbnb and VRBO can be great income-producing properties, but many traditional lenders won’t finance them due to inconsistent income streams. That’s where DSCR loans come in, they allow you to qualify based on projected rental income, making them ideal for vacation rentals and seasonal properties.
Whether you’re acquiring your first Airbnb or scaling your short-term rental portfolio, a DSCR loan provides the flexibility you need. Explore our DSCR loan options for Airbnb properties and see how to finance your next rental with confidence.
Business Purpose Loan vs. Traditional Investment Property Loan
Traditional loans often require personal financial verification, like tax returns and employment history. DSCR loans focus on Debt Service Coverage Ratio (DSCR) a measure of how well the property’s income can cover the loan payments.
Why Choose Newfi for Your Business Purpose Loan?
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.
Have questions about your unique situation or need help choosing the right investment property loan? .We help borrowers get their investment property deals done without unnecessary red tape. We also offer unique options like interest-only calculators and non-QM mortgage solutions that can fit more complex investor profiles.
Not ready to take our word for it? Read any of our 2,000+ reviews and see what our past clients have to say!