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Discover the Stability of Long-Term Rentals for Home Security

If you want to own an investment property that you plan to rent to tenants for many years to come, consider a Long Term Rental (LTR) loan.

LTR loans provide financing with competitively low interest rates based on rental cash flow. This makes financing more accessible than standard loans, which base financing on factors such as investor’s personal income.

What is an LTR Loan?

There are a handful of options to finance investment property. Loan types often differ based on their qualification requirements and the terms they offer. The best loan for you will depend on your individual needs. 

With an LTR loan you can qualify for a mortgage that will finance a non-owner occupied rental property you plan to manage with tenants for the long term. 

As a non-QM (non-qualifying mortgage) an LTR loan provides competitively low interest rates. This is possible because it relies on the property being worth a certain value in rent-ready condition. It’s ideal for investors who primarily make their income from rent, rather than fixing and flipping property, and for those who plan to manage the property for many years to come.

Financing takes into consideration the cash flow you’ll get from the property as well as the condition and value of the property itself. Tax returns aren’t required to qualify and debt-to-income ratios aren’t needed. You also have the option to apply as a corporate identity, rather than being individually tied to the property and the loan.

How to Get an LTR Loan

If you’d like to see whether you qualify for an LTR loan, connect with us. To get you started, we’ve outlined the steps and qualifications needed to help you understand the process.

The Financing Process

By sharing basic information about your potential purchase or refinance, we’ll work with you to see if an LTR loan meets your needs and whether the property qualifies.

As we move through the process we’ll discuss the terms you qualify for and your financing options, as well as request the necessary documentation.

We’re with you through each step, leading to a simple and efficient closing so that you can move forward with your investment.

LTR Loan Requirements to Meet

These are some of the common requirements often needed to qualify for an LTR loan. If you have questions about these requirements, we’re here to help.

  • We’ll need to know what the expected leverage is for the property, whether the loan is for a purchase or refinance. In many cases, the Loan-to-Value ratio needs to be above 70-75%.
  • If applying as a corporate entity, we need LLC documentation including Articles of Incorporation, Employer Identification Number, and an Operating Agreement.
  • We don’t need income information but do need the last three months of bank statements.
  • A valid Driver’s License is required for the borrower.
  • Rent roll/proof of rents is needed to show rents that are due and rents that have been collected.
  • You’ll also need to provide contact information for insurance, title/escrow, and a point of contact for an inspection/Broker Price Opinion for the property.
  • The property needs to be in a condition that is rent-ready, rather than needing renovations.


Financing property is an important step in reaching your investment goals. It’s ok to have questions. We’ve compiled answers to the frequently asked ones, but don’t hesitate to ask more.

How does an LTR loan differ from standard investment property loans?

LTR loans provide financing for a specific investment purpose. They offer low interest rates for property investors looking specifically to purchase or refinance a property that they will rent long term. With financing based on rental cash flow, LTR loans are often more accessible to investors than the standard income requirements needed for traditional loans.

LTR loans can be given to an LLC, rather than an individual, which isn’t possible with standard mortgages. They may also serve as a good option to refinance loans with higher interest rates.

Do I need good credit to qualify for an LTR loan?
Without the Debt-to-Income (DTI) ratio, how is debt vs income considered for qualification?
What costs are required to close an LTR loan?
Is there a prepayment penalty with LTR loans?