Starting Your Investment Property Financing Journey

Are you considering embarking on your first real estate investment venture? Unless you have a ton of cash saved, then you’ll require financing for your initial investment property. Readying yourself for investment property lenders and launching your real estate business entails strategic planning and preparation. Here’s how to navigate the investment property loan process effectively to help secure your first property:

Building Creditworthiness

Establishing a solid credit profile is paramount when seeking investment property financing. The better your credit profile is, the better your financing terms will be. Lenders scrutinize credit history to assess reliability and lending risk. Having a track record of timely payments and responsible debt management can boost credit scores, enhancing loan eligibility and terms. Before applying for investment property financing, get current with any late debt payments, pay off judgements and collection accounts, and reduce your revolving credit balances to improve your credit profile.

Saving for a Down Payment

A common mistake made by rookie property investors is thinking they’ll be able to finance 100% of property and renovations costs. Although there are investment property lenders like KIAVI that can deliver up to a 95% loan-to-cost (LTC) and up to 100% of rehab budget financing to more seasoned investors, most property buyers will need a 10% to 25% down payment. Having a significant down payment also strengthens a loan application and makes monthly loan payments more affordable.

Researching Loan Options

Thoroughly research diverse loan options to identify the most suitable financing solution for your investment needs. Compare lenders, loan programs, interest rates, and consider crucial factors such as loan terms, closing costs, and prepayment penalties to make informed decisions.


By adhering to these practical strategies, first-time investors can confidently navigate the investment property loan process. Building credit, saving diligently, and researching loan options can help lay the groundwork for a successful real estate investment business. With careful planning and preparation, you will be able to Borrow Confidently™ and generate lucrative returns and long-term financial stability.

Interested in competitive and affordable investment property financing? Contact our recommended best investment property lender KIAVI.

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