Most of us concentrate on finding the ideal place to call home when buying a new house. But sometimes you want to buy a property for investment purposes. The financing you receive in this scenario is called a non-owner occupied loan. So, if you want to expand your real estate portfolio, you’ve come to the right place.

Keep reading to learn more about non-owner occupied loans and the different types that exist.

What Are Non-Owner Occupied Loans?

Non-owner occupied loans, also referred to as investment property loans, are financial aid offered by lenders to help you buy homes that aren’t meant to be your permanent dwelling. These loans differ from traditional home mortgages in terms of conditions and interest rates. Also, lenders of non-owner occupied loans could demand a higher down payment due to higher risks associated with the purchase.

Types of Loans for Non-Owner Occupied Properties

You can opt for the following loans:

Non-Owner Occupied Hard Money Loan

Non-owner occupied hard money loans offer investors a lifeline when they face challenges securing financing through traditional channels. They provide the flexibility and agility needed to seize investment opportunities quickly.

Let’s take a look at some of the core features of this program:

  • Property Types: This program is applicable to all property types, making it versatile and suitable for a wide range of investment opportunities.
  • Flexible Terms: Non-owner occupied hard money loans are known for their flexibility. They are an excellent choice if you have bad credit, are self-employed, or struggle to provide proof of income.
  • Property Issue Resolution: If your property has issues that traditional lenders may balk at, this program is designed to accommodate such situations.

Non-Owner Occupied Alternative Financing Loan

This loan program acts as a bridge between traditional financing and hard money loans, offering a balanced approach. Its key features include:

  • Property Inclusivity: Like the hard money loan program, this alternative financing option is applicable to all property types. This ensures that you can explore diverse investment opportunities without constraints.
  • Qualification Flexibility: If you don’t meet the stringent requirements of traditional bank loans, this program provides a more lenient qualification process.
  • Balanced Approach: It strikes a balance between the stringent criteria of conventional financing and the flexibility of hard money loans. This makes it suitable for borrowers who don’t fit neatly into either category.

The financing loan offers borrowers a middle ground, allowing them to secure financing for their non-owner occupied properties without compromising their financial situation or resorting to high-interest private loans.

Why Consider Non-Owner Occupied Loans?

Here are some reasons for considering non-owner occupied loans:


Non-owner occupied loans enable investors to diversify their real estate holdings, reducing risk by spreading investments across different types of properties and locations.

Income Generation

Rental properties financed with non-owner occupied loans can generate rental income, helping investors build long-term wealth and financial security.

Tax Benefits

Real estate investors may benefit from tax advantages such as depreciation deductions, mortgage interest deductions, and potential tax-deferred exchanges.

Potential Appreciation

Over time, real estate properties can appreciate in value, providing potential capital gains when sold.

Ready to supercharge your real estate investments? ARC Private Lending, your trusted private hard money lender, is here to help you achieve your financial goals. Whether you’re an experienced investor or a beginner, our quick and adaptable hard money loans are crafted to match your specific needs. Contact us to secure your non-owner occupied loan today.