Smart Year-End Investing: How to Secure a Loan for Investment Property in December 2025

December 5, 2025

Why December is Still a Smart Time to Invest

Many people think the real estate market cools off in December — but for investors, it’s actually one of the best times to buy.

Here’s why:

Year-End Tax Benefits: Interest, fees, and depreciation can still count toward your 2025 deductions if you close before December 31.
Less Competition: With fewer buyers active, you’re more likely to negotiate better terms.
Motivated Sellers: Some property owners want to offload before the new year, increasing your leverage.
Loan Quotas: Many lenders are working hard to meet year-end targets, making fast-track approvals more likely.

To close before 2026, investors often rely on flexible, fast-moving loan programs that don’t require traditional income documentation.

Here are the top 3 options:

Short-term financing for fix-and-flip, fast acquisitions, or transitional deals.
Can close in as little as 10 business days.
Great if you plan to refinance into a long-term loan in early 2026.

The key to a successful December closing is preparation. Here’s how to keep things moving:

Apply Immediately
Pre-approval takes 1–2 days. Don’t wait — lenders have limited slots in December.
Gather Documents Early

- Government-issued ID
- Purchase agreement or LOI
- Rent roll or income projection (for DSCR)
- Bank statements (for bank statement loans)
- LLC documents, if buying under a business entity

Work With a Lender Who Specializes in Investors
Not all lenders can handle DSCR or bridge loans. Work with teams who know how to close investment loans fast.
Communicate Daily
Respond quickly to requests, and keep your real estate agent, insurance provider, and title team in sync.

Whether you’re buying your first property or your fiftieth, these tips can help:

Think Beyond Conventional Loans
Many conventional lenders can’t close before year-end. Non-QM lenders (like DSCR or bank statement specialists) move faster.
Use an LLC for Long-Term Benefits
Buying under an LLC offers tax benefits and asset protection — and all the loan types above support it.
Focus on Cash Flow and Value
Don’t just chase a deal. Evaluate the rental potential, location, and long-term appreciation of the property.
Plan for Q1
Even if your loan closes in late December, be ready to rent, renovate, or refinance in early 2026 to maximize ROI.

Question	Answer
Can I still close on an investment property in December?	Yes, many deals close within 2–3 weeks. Act now to stay on track.
Do I need W-2s or tax returns to qualify?	Not with DSCR or bank statement loans. These programs are income-documentation flexible.
Is it better to buy through my LLC?	In most cases, yes — especially for liability protection and long-term investing.
What types of properties can I finance?	Single-family homes, duplexes, triplexes, multifamily, short-term rentals, and mixed-use properties.
What is the minimum credit score for these loans?	Typically, 620 for DSCR and 660 for bank statement or bridge loans.