How to get fixed rate loans on investment properties?!

[Karina Busch]

I have started purchasing a few investment properties and have an LLC. Everything has been cash so far but I have contacted several local banks and all of them have said about 1-2%+ above regular mortgage rates, 3-5y ARM with 15-25y term, and 20-30% down. This is before I mention having an LLC or anything. I have no debt, significant equity, good W-2, and excellent credit. I'm fine with the money down and shorter term but the higher rates and the ARM I am not a fan of in general. How are people buying multiple non owner occupied properties on fixed rate traditional 30y mortgages?

[Robin Simon]

Quote from @Brandon Croucier:

I'd be looking to get into a DSCR loan.

These loans are qualified by the properties income rather than your income, can close in an LLC, and also do not report on your credit report!

Like Brandon mentioned - you sound like the picture perfect classic "DSCR Loan" borrower - dscr loans are made for exactly this typically - LLC friendly and usually the best fit for when investors hit the 5 or so property mark and hit a roadblock with banks, cash etc like you desribed.

Check out this 12-part article series published here on BP on all about DSCR Loans, hope it helps!

BP-Published DSCR Guide!

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12 Frequently Asked Questions (And Answers) About DSCR Loans

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Short-Term Rental Loans: What Are the Options and How Do DSCR Loans Stack Up?

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DSCR Loans: Terms to Know When Working With These Popular Rental Loan

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What’s Next For DSCR Loans? Updates For 2024 and Beyond

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What Are Current DSCR Loan Rates? Key Market Movers and How to Track Rates

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How Do DSCR Lenders Calculate Your Interest Rate?