When you start looking for your next investment property, you’ll probably find that getting approved for an investment property loan is not as simple as it used to be .  There are still banks funding loans for investment properties and you can certainly get approved, but you’ll need to be aware of the current rules of the game .

The days of no down payment or low cash down options are a vision of the past.   You’ll be asked to put 20%-30% down and you will need to have above average credit.  If your credit is good , but not fantastic , then expect to put even more cash down.  Is it still possible to obtain an investment property loan without a down payment ?  Actually, yes, but these loans are typically obtained from a commercial lender that will accept cross collateral (a lien on an additional property that you already own) in lieu of a down payment.

Your best bet will be to seek out a mortgage broker that specializes in investment property loans in your area.  They will usually know of all the lenders that offer funding options that will fit your needs , and will be able to assemble the best deal for your scenario .  

In addition to knowing the best financing options, they may also have other contacts that both purchase investment property and fund private investment property loans themselves.  Sophisticated brokers will sometimes have some private lenders available to bring in when conventional loan options are unavailable .

Private lenders often have capital on deposit in a self directed IRA account intended for funding private notes for individual investors that cannot obtain a conventional investment property loan.   Depending on the interest rate they request , this could be a win-win scenario for everyone involved, so stay open-minded.

Be sure to ask around, search the internet, and choose the best options for you.  Don’t become frustrated if you are unable to find the perfect solution right away.  The best option for you may exist in a single relationship that is right around the corner .  Do your research , understand your boundaries , and take it one step at a time .

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