Investment Property Loans Texas

There are various methods available through which one can earn a living. Everyone wants a safe and beneficial form of income. 

As time goes on, more fields are being created. Many of us like to make challenging decisions when selecting our income source, while others choose a safer option.

 For both parties, real estate can be the ultimate choice. Lately, people are leaning towards the real estate market.

 In real estate, you can set up a fixed source of income for many more days to come. At first, you need the money to invest in properties. 

The question is, what’s the best source of getting this money? Your answer is loans. There are different forms of loans, but all of them aren’t convenient. 

In this article, we will know about the details of investment property loans in Texas. If you have any questions about it or want to see any information about it, then give a careful read up to the last.

For investment property, what type of loan is best?

Investment property loans texas
For investment property, what type of loan is best

There are different types of loans available now, but they aren’t convenient for investment property. Different loans provide various benefits and also differ in amount. 

For a long-term rental investment property, a home equity loan is the best choice. There are other ways, such as cash-out refinance or through HELOC.

With the help of a home equity loan, you can be able to borrow up to 80℅ of the home’s equity value to purchase a second home. 

Indeed, a home equity loan is the best choice for you. The types of investment property loans are:

  • Hard Money
  • Conventional mortgage
  • Commercial Investment
  • Fix and flip
  • Private money

The above ways are some of the ways of getting an investment property loan that may help you.

For investment and rental properties, why are the interest rates higher?

For investment and rental properties, why are the interest rates higher
For investment and rental properties, why are the interest rates higher

This is a common question which we need to face. According to surveys, borrowers are more likely to abandon the investment properties or rental properties than their own homes in any financial crisis.

 The Lenders have this data, too, so when they’re making loan decisions, they prefer a higher interest rate because they know people are more likely to stop making loan payments if they are not living in their property and have any sort of financial difficulties. 

According to Wharton School’s report, some investors will cease paying the loan payments if the property is a poor investment for them.

Guidelines for Investment Property Loan

Guidelines for Investment Property Loan
Guidelines for Investment Property Loan

It’s always better if we get guidelines for free. You may face problems if you don’t have good policies and consider doing your job with minimum knowledge.

 Loan lenders consider your capacity to be a landlord. If you don’t have previous experience in property management, then it may prove to be very difficult for you. Hiring someone to manage your property can be a beneficial solution for you. 

You won’t get any official guidelines about it, though. There’s a limit on the number of properties with a mortgage that one can own for Fannie Mae or Freddie Mac financing. So you need to abide by these limits.

 Another important thing is that you need to have several months worth of months’ reserve payments in the bank to ensure that when you don’t have a tenant, you’re covered up.

What are the reliable companies providing investment property loans in Texas?

Wherever you are, you’ll find an institution that provides investment property loans. All of them don’t give the best rates or the best benefits but if you look for a while then indeed you will find one. Here we mention a few of those institutions:

  • The Texas Mortgage Pros
  • Corevest Finance
  • Highlands Residential Mortgage
  • CR Lending
  • Stallion Funding
  • Temple View capital
  • Hard Money Loans

There are hundreds of more institutions that would love to provide you a loan for investment properties, but these are some of the most renowned and trustable ones. You can contact them anytime from now.

Why is Investment Property Loan more challenging to get?

Qualifying for an investment property loan is more difficult because lenders take into consideration a lot of factors. The reasons why it’s more difficult are:

Higher Credit Score: You need to have a high Credit Score to get a loan for your investment property.

Down payment of at least 20%: This type of loan has more percentage of a down payment than a conventional loan.

Better Debt-to-Income ratio: If you don’t have more income than the amount you are lending, then the lenders aren’t satisfied.

High Risk: Lenders don’t want to take risks, so they choose a safer option.


Investment property loans in Texas are hard to get, like in any other city, but we’ve mentioned some institutions through which you can get the best deal for yourself. 

Getting a loan for property investment can be very tough for anyone. There is high risk involved in real estate, too, so many people don’t want to give loans.

 These things and some other factors make it difficult to get an investment property loan while getting a personal property loan is more accessible.

 We have tried to solve your problems regarding Texas’s investment property loans, not to worry. Hope you’re pleased with the pieces of information provided above.

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