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What Are Business Loans for Rental Property?

There are a couple of opportunities for people looking for rental property loans for small business. Firstly, you should consider traditional mortgage providers: national and regional banks and credit unions. The right choice would be to apply to the Bank of America, US Bank, Chase, and Wells Fargo.

Traditional mortgage providers are right for prime borrowers, who can finance at least 20% of the down payment.  These loans are good for individuals (not business entities). Reputation and safety are two things that attract borrowers but they should also be ready for strict requirements of the traditional lenders and less profitable loan terms.


Online mortgage providers also offer loans for rental property business. It can be more convenient and usually faster. There is a slight difference between interest rates of online and traditional lenders. Furthermore, online mortgage providers can finance loans for business purchasing the rental property from borrowers with bad credit.

Unfortunately, most of the online mortgage providers still require paying off the down payment. You can try to negotiate with a lender to divide it into installments, for instance.

You can also find the best business bank for rental property loans with HELOC or Home Equity Loan. In this case, the lender uses the property as “collateral” for the loan. It’s possible to borrow up to 90% of the house value. It works as a line of a credit or a credit card, so you can’t exceed the limit.

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