Investment Loans

At Compass Mortgage, we’re passionate about helping investors like you achieve your real estate investment goals. We understand the unique challenges and opportunities that come with navigating the real estate market. 

We’ve developed a range of tailored financing solutions designed to empower you to invest with confidence and maximize your potential returns.

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What is an Investement Loan?

An investment loan is a type of financing specifically designed to help you purchase assets intended to generate income or appreciation. Unlike a traditional mortgage for your primary residence, investment loans are used for non-owner-occupied properties.

Investment loans can be used to finance: 

  • Income-producing property, such as a rental property, including single-family homes, multi-unit buildings (duplexes, triplexes, or even larger apartment buildings) or commercial properties that you plan to rent out and earn rental income from
  • Fix-and-flip projects if you intend to quickly purchase a property, renovate it and then sell for profit

How to Get an Investment Loan

  1. Contact Compass Mortgage
  2. Meet the loan requirements
  3. Lock in interest rate and get a fully underwritten loan commitment with Get Committed®
  4. Make a winning offer to the seller with your Get Committed® loan commitment on your side 
  5. Secure your investment property

Why Compass Mortgage for Your Investment Loan

  • Diverse investment loan options can be customized to suit your specific needs, goals and financial situation. 
  • Flexible loan terms: Designed to align with your investment strategy, giving you the flexibility you need to succeed.
  • Competitive interest rates: We believe in helping you maximize your returns, which is why we offer competitive interest rates on our investment loans.
  • Fast approval process: Our streamlined approval process allows you to act quickly when golden opportunities arise, giving you a competitive edge in the market.

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Investment Loan Requirements
  • Credit score: 600-700s
  • Debt-to-income ratio (DTI): Below 43%
  • Down payment: 15-25% of property purchase price
  • Documentation: Income and employment verification, asset documentation, identity documents and potential proof of reserve funds 
  • Property Appraisal
  • Business plan: Outline your strategy, potential income, projected expenses and plans for property management
  • Experience: Lack of experience won’t necessarily prevent you from being approved but showing proof of your investment experience may help your chances
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Investment Loan FAQs

The down payment amount depends on your financial situation and the property. Typical investment loan down payments can range from 15-25% of the purchase price.

Interest rates for investment loans are just slightly higher than conventional home loans, but, again, will depend on your unique situation.

Yes, DSCR (Debt Service Coverage Ratio) loans allow lenders to base approval on the property and its potential monthly income rather than your finances.

Compass Mortgage offers the following loan types to reach your investing goals: 

To leverage the equity from a current property for a new investment:

Yes, investment loans have the same closing costs as a conventional home loan including origination fees, appraisal fees, insurance and recording fees.

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