Rental investor programs
Long-Term Rental Loans for Buy-and-Hold Investors
A long-term rental loan qualifies the property on its rental income rather than your personal income. It is used for 1-4 unit rentals, condos, townhomes, and select 1-8 unit buildings, with purchase, cash-out, and rate-and-term options. Tesni matches the file to investor partners; guidelines vary.
At a glance
| Best for | Buy-and-hold investors, self-employed borrowers, LLCs, and portfolio builders |
|---|---|
| Property types | Single-family rentals, 2-4 units, condos, townhomes; select 1-8 unit buildings |
| Loan purpose | Purchase, cash-out refinance, rate-and-term refinance |
| Term options | 5, 7, 10, or 30-year fixed; availability varies by investor |
| LTV / down payment | Up to 85% LTV for eligible purchase scenarios; 15-25% down typical |
| DSCR | 1.20+ typical; exceptions vary by investor |
| Credit | 680+ typical; compensating factors considered |
| Entity | LLC, corporation, or limited partnership |
| Documentation | Property income, appraisal, entity docs, insurance, reserves |
| Close time | 30-45 days typical |
Who it fits
This program is built for investors who want the property to carry the qualification instead of personal income. It fits self-employed borrowers, LLCs, and investors adding to a rental portfolio.
- Buying a single-family rental, duplex, triplex, or fourplex
- Refinancing a rental to access equity or move out of a short-term loan
- Building a portfolio without relying on personal income documentation
- Holding property in an LLC or other legal entity
What the investor reviews
The investor looks at the property's income, the loan-to-value, the borrower's credit profile, reserves, and the entity structure. The exact order and weight vary by investor.
- Market rent or appraised rental income versus the proposed payment
- Credit history, tradelines, and any significant credit events
- Liquidity and reserves after closing
- Property condition, insurance, and title
- Entity documents and guarantor information
How the process works
We start with the scenario, not the application. That lets us match the file to investors that actually fit the property, loan amount, and entity.
- Scenario review: property, units, use of funds, entity, timeline
- Investor match: we compare program fit across the panel
- Application and documents: property income, entity, credit, insurance
- Appraisal and underwriting: the investor confirms value and eligibility
- Closing and funding: the investor and title company coordinate
What to prepare
Having the core documents ready shortens the review. The investor may ask for additional items after the file is opened.
- Purchase contract or current loan statement
- Entity documents, EIN, and operating agreement
- Rent roll, lease, or market rent support
- Insurance declaration and property details
- Guarantor ID and credit authorization
Frequently asked questions
Do long-term rental loans require tax returns?
Many programs use property income and entity documentation instead of personal tax returns. The exact documents depend on the investor and program.
What DSCR do I need?
A 1.20+ DSCR is typical, but the minimum varies by investor, property type, and credit profile. Some scenarios qualify with compensating factors.
How much down payment is required?
15-25% down is typical. Eligible purchase scenarios may reach 85% LTV. The final number depends on the investor, property, and borrower.
Can I close in an LLC?
Yes, many programs allow LLC, corporation, or limited partnership vesting. Entity requirements and state rules vary.
What property types qualify?
Single-family rentals, 2-4 units, condos, and townhomes are common. Select investors finance 1-8 unit buildings.
Can I finance a vacant property?
Some investors use appraised rental income for a vacant property. Availability varies, so confirm before you apply.
Will there be a prepayment penalty?
Prepayment structures vary by investor. Step-down and fixed structures are common. Review the terms before you commit.
How long does it take to close?
30-45 days is typical. Appraisal, insurance, and entity review can extend the timeline.
Related programs
Tesni, LLC is a U.S. business lending marketplace and broker, not a direct lender. We do not approve loans, fund loans, or set pricing. All credit decisions are made by third-party investors subject to their own underwriting and program availability. Guidelines, eligibility, and availability vary by investor and state.