Why investors buy out of state
Prices and rents vary a lot by market. Many investors buy where the numbers work better than at home. A mortgage broker who lends in multiple states lets you shop those markets without changing who you work with.
What lenders look for
- Down payment: usually 15% to 25%, depending on the loan and property type.
- Credit: higher scores get noticeably better pricing on investment loans.
- Reserves: often six months or more of payments in the bank after closing.
- Rental income: from a current lease or the appraiser's market rent estimate.
Qualifying on rental income
With a conventional investment loan, lenders look at your personal income plus a portion of the property's rent. There are also options that qualify mainly on the property's rent compared to its payment, which helps investors who are self-employed or already own several properties. I'll compare both for your deal.
Buying and closing remotely
- Line up a local agent and property manager before you make offers.
- Get pre-approved first, so sellers take your offer seriously.
- Inspections and appraisals happen locally, and reports come to you electronically.
- Closing can usually be done with a mobile notary or a local title office.
I coordinate with the out-of-state agent and title company, so you have one point of contact the whole way.
Commercial and larger properties
Properties with five or more units, mixed-use buildings, and business property are commercial loans. I refer those to a trusted commercial lending partner and stay involved, so you still have one point of contact.
Common questions
Can I get a mortgage on a rental property in another state?
Yes. Eric Hoffman (NMLS #2397260) arranges investment property loans in almost every U.S. state for rental homes and 2-4 unit properties. You don't need to live near the property.
How much do I need to put down on an out-of-state rental?
Usually 15% to 25%, depending on the loan type, property type, and your credit.
Can rental income help me qualify for an investment loan?
Yes. Lenders count a portion of the property's rent, and some investment loans qualify mainly on the property's rent compared to its payment.
Can I close on an investment property without traveling?
Usually, yes. Most closings can be done with a mobile notary or a local title office, and inspections and appraisals are handled by local professionals.
Want to run your numbers?
Text me your situation and I'll tell you which options fit. Most people hear back within a couple of hours during business hours.
This guide is general information, not a commitment to lend. Loan programs, limits, and guidelines change, and all loans are subject to credit approval and property eligibility.