It’s a lot harder these days to get financing on an investment property.

Approval for financing is much more difficult if you don’t have excellent credit and a viable, sufficient monthly income—lenders welcome those borrowers with open arms, but what about the rest of us?

When you borrow for a rental property it is called non-owner occupant financing. If you are planning on purchasing a rental investment there are various options. If you are working with the right lender—they can help you strategize both a short-term and long-term plan to ensure you keep your finances straight. Getting a mortgage for an investment property loans in Arizona can be tricky.


Buying as a Straight Rental Property— This will be a conventional loan from a bank. You will be applying to buy an investment property. You will be required to put down at least 20% of the purchase price for a down payment—plus closing costs and costs for renovations. You will also need at least a 720 FICO score, a strong cash reserve and a healthy monthly income.

Buying as a personal residence— This will also be a conventional loan, but you will be buying it as your home. You are allowed to buy a home and reside in it for 12 months—then, rent it out. Because it will be purchased as a personal residence you are qualified for an FHA loan. With FHA financing you can put down as little as 3.5%. The terms of the rental don’t change when you move out and your tenant moves in. This is a good option for a borrower who doesn’t intend to buy multiple properties.

Hard Money Loan— A hard money loan is an option if you either want to buy an investment property loans in Arizona and continue to live in your own home or you want to purchase multiple rentals. These loans are financed by private money investors and aren’t required to follow the strict guidelines set by Fannie Mae and Freddie Mac. Because they offer such flexibility, residential Arizona Hard Money Loans are used by many types of investors. These loans have fast approval and borrowers receive funds within two weeks. This speedy process is also helpful in a competitive housing market. Banks can take months to produce funding—all the while, investors lose their potential property. Borrowers who have been through foreclosure, bankruptcy or have poor credit can still qualify for a residential hard money loan.

It is important that you educate yourself on rental property before becoming a landlord.

Investing in rental property is not always easy, but if you start early—you can have a nice rental property income stream.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg


Level 4 Funding LLC 
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177


Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701  

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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