Investment Property Loans for Owning Rental Homes

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Key Features & Benefits

Competitive Interest Rates

We offer competitive interest rates that are designed to meet your investment goals while keeping your costs manageable.

Flexible Loan Terms

Choose from a range of loan terms to suit your investment strategy. Whether you're aiming for short-term gains or long-term stability, we have options that fit your situation.

Customizable Loan Amounts

Tailor your loan amount to match the investment property's value and your financial capacity, helping you optimize your investment potential.

Streamlined Application Process

We understand that time is of the essence in the real estate market. Our efficient online application process aims to get you the financing you need as quickly as possible.

Turn Your Financial Goals into Reality

Investing in rental properties is a smart way to grow your wealth. By purchasing a property to rent out, you can earn more than the monthly expenses, making it a profitable real estate investment.

Expert Guidance

Whether you own several rental homes, or you are interested in real estate investing for beginners, our experienced loan officers are here to guide you through the loan application process, offering insights and advice to help you make informed decisions.

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You Might Say We're Unlike Any Other Bank

At Midland, we know it only takes a moment for an idea to spark, to find your dream home, or to start planning for your forever. Whatever your moments are, we're here for them. Learn who we are.

Our loan officer was attentive, clear, and guided us through every step, addressing all our questions.

Yanet, Customer

Our lender provided helpful information, kept us updated, and helped us navigate significant title delays. As an out-of-state client, close coordination and timely updates were key to our positive experience.

Paul, Customer

Explore Your Options

Owner-Occupied Investment Property or Second Home

If you plan to reside in part of the property and rent out other units or sections to tenants, this arrangement allows you to generate rental income while also benefiting from the convenience of living on the property. You can potentially lower mortgage rates compared to non-owner-occupied investment properties. As an owner-occupier, you may be able to take advantage of these investment property loan options as well as others:

FHA Home Loan with a downpayment as low as 3.5% of the loan amount
Choose from an adjustable-rate mortgage (ARM) or a fixed-rate conventional mortgage loan with a downpayment as low as 15% of the loan amount for 1 unit

Non-Owner-Occupied Investment Property

A non-owner-occupied mortgage is an investment property mortgage, or rental mortgage, that is tailored for borrowers who have no plans to reside in the property themselves.

Single Family Unit Property

With a single-family unit, you have only one set of tenants, which can mean fewer maintenance concerns and potentially lower vacancy risks. This may be an easier solution for individual investors, especially those who are new to real estate investing.

Conventional Mortgage Loans with a downpayment as low as 15% of the loan amount for 1 unit

Multifamily or Multiunit Property (Non-Owner Occupied)

Purchasing properties with multiple units allows you to generate rental income from each unit, potentially increasing overall cash flow compared to single-unit properties.

Mortgage Loans with downpayment options as low as 25% of the loan amount are available for 2-4 unit properties
Commercial Rental Property Loans are available for locations with 5+ units

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Unlock Your Dream Home

1. Get Pre-Approved Understand the benefits before you begin. What to know about pre-approval.

2. Find Your New Home With your pre-approval in hand, start searching for your next home.

3. Close the Deal Finalize your mortgage loan, sign the paperwork, and smoothly transition into your new home!

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Quiz: Find Your Ideal Home Loan

Explore quick, interactive quizzes to pinpoint a loan tailored to your needs. Where are you in your home financing journey?

Take the Home Buying Quiz

Take the Refinancing Quiz

Take the Home Building Quiz

Frequently Asked Questions

What determines investment property mortgage rates?

Investment property mortgage rates are based on a series of factors, such as the number of units, whether it is owner-occupied, the downpayment amount, and the owner’s credit-worthiness. If you are interested in owning rental homes and investing on property, our Mortgage Experts would be happy to help you determine the best loan for your situation. You can begin the application process online, call 1-855-468-7318, or contact one of our Mortgage Loan Officers to learn more.

Can I use a HELOC to buy an Investment Property?

Yes, you can use a Home Equity Line of Credit (HELOC) or Home Equity Loan to buy an investment property, but there are certain factors and considerations to keep in mind. To use a HELOC or Home Equity Loan for purchasing an investment property, you need to have sufficient equity in your primary residence. Every individual's financial situation is unique, and it's important to make informed decisions based on your specific circumstances.

What type of investment property types can Midland States Bank help me purchase?

Our loan options are suitable for various investment property types, including residential rental properties, commercial properties, and multi-unit dwellings. Call 1-855-468-7318 or contact one of our Mortgage Loan Officers to learn more. If you are investing on property with 5 or more units, you would need a commercial rental property and would need a commercial loan. We can help you finance these investments too. Call 1-855-696-4352 to get started, or schedule an appointment online.

What counts as a rental property?

A rental property is any property that you own for the purpose of subletting for additional income. It can be managed by a rental company, be owner occupied or the owner doesn't need to live there at any time. We can help you determine what kind of loan you need for your property. Simply call 1-855-468-7318 or contact one of our Mortgage Loan Officers to learn more about owning rental homes.

What does a “unit” refer to?

In the context of investment property, a "unit" typically refers to a separate and self-contained living space. It can be an individual apartment, condominium, townhouse, or any other distinct living area that is part of a multifamily or multiunit property.

For example, in a duplex, each side of the building could be considered a separate unit. In an apartment building, each apartment would be considered a separate unit. In the case of a multiunit property, like a fourplex, there would be four individual units, each with its own living space and often its own amenities.

Investors often purchase properties with multiple units as they can generate rental income from each unit, potentially increasing overall cash flow compared to single-unit properties. Rental property management can be a great source of income.

What if I want to buy rental properties that have 5 or more units?

If you are investing in property that has 5 or more units, this is considered a commercial rental property and would need a commercial loan. Midland States Bank can also help you finance these investments. Call 1-855-696-4352 to get started.

I want to buy rental properties, but I am new to the process. Where do I start?

Real estate investing for beginners can seem intimidating, but our Mortgage Experts are here to guide you through every option available, assisting you in finding the perfect funding solution for your unique situation. From the beginning of the buying process to handing you the keys to your new property, we'll be by your side, answering your questions every step of the way. Your journey to rental property management starts with us as soon as we receive your call!