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Investor Loans in Temple City
Temple City's stable residential character attracts rental investors who value proximity to San Gabriel Valley schools and commuter access. Most investment properties here are single-family homes and older duplexes in established neighborhoods.
Traditional lenders often reject investor deals based on W-2 income or debt-to-income ratios. Investor loans focus on the property's rental income instead, which opens financing to portfolio buyers and self-employed investors.
Most investor loans require 15-25% down for single-family rentals. Credit minimums range from 620 to 680 depending on the program and whether you're financing your first rental or your tenth.
DSCR loans dominate this space—lenders calculate a debt service coverage ratio by dividing projected rent by the mortgage payment. You need a DSCR above 1.0, ideally 1.25, to qualify without proving employment income.
Investor loans live in the non-QM space, which means you won't find them at Wells Fargo or Chase. Specialty lenders price these deals based on DSCR, credit score, loan-to-value ratio, and whether the property is already rented.
Rates run 1-2 points higher than owner-occupied conventional loans because lenders price for investor risk. A broker with wholesale non-QM access can shop 30-40 lenders to find the sharpest pricing for your specific deal.
Temple City investors often underestimate how rental appraisals work. Appraisers pull comparable rents, not just sales comps, and a weak rent survey kills deals even when the purchase price looks solid.
I see investors chase 1031 exchanges or portfolio refinances that need fast closes. Hard money bridges the gap when timing matters, then you refi into a DSCR loan once the property stabilizes and shows rent history.
DSCR loans suit long-term buy-and-hold investors who want 30-year fixed terms. Hard money loans work for fix-and-flip projects or bridge financing when you need capital in two weeks, not two months.
Bridge loans offer another angle—short-term financing that gets you into a property while you line up permanent financing or sell another asset. Each program serves a different investment strategy.
Temple City sits in an unincorporated LA County pocket with good schools, which keeps rental demand steady from families. Single-family homes and small multifamily properties dominate the rental stock.
Rent control doesn't apply here, but California's statewide AB 1482 caps annual increases at 5% plus inflation for properties over 15 years old. Factor that into your cash flow models when calculating DSCR.
Yes. Lenders order a rent schedule as part of the appraisal to determine market rent. That projected rent calculates your DSCR even without a tenant in place.
Most programs require 6-12 months of PITI reserves per financed property. The more rentals you finance, the higher your total reserve requirement climbs.
DSCR lenders don't cap property counts like Fannie Mae does. Portfolio investors routinely finance 10, 20, or 50+ properties through non-QM programs.
Some lenders approve DSCR as low as 0.75 with compensating factors like higher credit scores or bigger down payments. Rates increase as DSCR drops.
No. DSCR loans work for rentable properties in livable condition. Fix-and-flip projects need hard money or renovation loans that fund construction draws.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.