Loan for Investment Property: Answers to the Most Common Questions in December 2025
Table of Contents
- Can I get an investment property loan if I’ve never bought one before?
- What if I’m self-employed or don’t have W-2 income?
- Can I use projected Airbnb income to qualify for a loan?
- Can I buy the property through my LLC?
- What is a DSCR loan and how does it work?
- How do bank statement loans work?
- Can I close before the end of 2025?
- What credit score do I need?
- FAQ Table
Can I get an investment property loan if I’ve never bought one before?
Yes. First-time investors can absolutely get financing. While you may not qualify for traditional bank financing, alternative loan products like DSCR loans or bank statement loans are designed for new and experienced investors alike.
What if I’m self-employed or don’t have W-2 income?
Not a problem. If you’re self-employed, retired, or run a business, there are loan programs that don’t rely on tax returns. Bank statement loans and DSCR loans qualify borrowers based on rental income or cash flow, not your personal W-2.
Can I use projected Airbnb income to qualify for a loan?
Yes, you can. Some DSCR lenders allow you to use short-term rental estimates from Airbnb calculators, AirDNA, or rental appraisals. This is especially useful for markets where vacation rentals outperform long-term rentals.
Can I buy the property through my LLC?
Absolutely. Most non-QM lenders support purchases through LLCs or business entities. Buying through an LLC provides asset protection, potential tax benefits, and is preferred for scaling your portfolio.
What is a DSCR loan and how does it work?
DSCR stands for Debt Service Coverage Ratio. This type of loan is based on the property’s income—not your personal finances. If the expected rental income covers the mortgage, taxes, and insurance, you’re likely to qualify.
Why investors love it:
- No income verification
- No tax returns or W-2s
- Ideal for buy-and-hold rentals or Airbnbs
- Quick closing timeline
How do bank statement loans work?
Bank statement loans allow you to qualify using your business or personal bank deposits over the past 12–24 months.
Requirements:
- Clean banking history
- Steady deposits
- Minimum credit score (usually 660+)
- Good for sole proprietors, consultants, gig workers, and freelancers
Can I close before the end of 2025?
Yes — but you need to act now. Many DSCR and bank statement lenders can close in 2–3 weeks if all documents are submitted promptly. December closings are still happening, but timing is critical.
What credit score do I need?
- DSCR: 620 minimum (some allow exceptions)
- Bank Statement Loans: 660+
- Bridge Loans: Flexible, often 640+
While higher credit scores get better rates, there are solutions available for mid-tier scores as well.
FAQ Table
| Question | Answer |
|---|---|
| Can I qualify without a job? | Yes, if the property’s income supports the loan (DSCR) |
| Are these loans available in all states? | Most states are eligible — check with your lender |
| What property types are allowed? | Single-family, duplex, triplex, quadplex, condos, townhomes, and mixed-use |
| Can I finance rehab costs? | Yes, with bridge loans or renovation-friendly lenders |
| How much down payment is required? | 20–30% depending on credit, loan type, and property use |
Final Thoughts
In December 2025, the opportunity to invest is still wide open. The key is knowing which loan fits your scenario and working with a lender who understands real estate investing.
Whether you’re buying your first Airbnb, scaling to your tenth rental, or doing a year-end cash-out refinance — the right loan can help you move forward quickly.
Want help getting pre-approved?
Visit our finance center to explore your options:
Previous Post
