ot only does it enable you to establish an additional income stream via rental income, but an investment property also allows you to take advantage of various tax benefits. To finance your investment property, you will need to take out a loan. Given the trust's investment portfolio's quality and diverse business models, which include real estate loans, commercial mortgage-backed securities, and other investment, you can rest assured that you will be able to secure a loan with favorable terms. Jackie Bowie of risk management firm Chatham Financial said banks faced having to inject more money into big-ticket property investment. After the 2008 mortgage meltdown, JVM let go of all its loan originators, and started to focus on the rental market instead. “We never focused on investment property realtors,” Heejin Kim, the co-founder of JVM, said. Here are some of the types of loans available for investment properties: 1. Take Out an FHA Loan on a 2- to 4-Unit Property – A low downpayment and average credit score for easy qualifying. The tenants pay the mortgage, and you can even use the rental income to qualify. 2. Get a Fixed-Rate Loan – These loans are ideal for buyers who plan to hold onto the property for a long time. 3. Get a Line of Credit – This type of loan allows you to draw down on the loan as you need it, up to the credit limit. 4. Get an Adjustable-Rate Mortgage – This type of loan is best for people who plan to sell the property in a few years, as the interest rate can change over time. With so many different types of loans available for investment properties, it's important to understand all the options before making a decision. Slowing job growth, dismal economic survey data, falling property values, and increasing defaults have forced lenders to tighten their criteria for loans. It is predicted that loan losses could reach $1 trillion in loans in 2022 after investor appetite for this debt collapsed. And, as seen in the accompanying table, the base rates used to price commercial mortgage loans grew by multiples last year. This resetting of rates has caused a significant shift in the market, as investor have become more cautious about taking on debt. Loans, bonds and other debt totaling about €1.9 trillion ($2.1 trillion) has been issued by companies raising money to fund investment, according to data from Refinitiv. Many investor are now turning to alternative sources of finance, such as private equity and venture capital funds. Some of the popular secured loans are loans against property and gold. But did you know, loan against your equity shares or mutual funds also qualify as secured loans? With so many options available, investor can choose the loan that best fits their needs. Whether you are looking to purchase an investment property or refinance an existing loan, understanding the different types of loans available can help you make the best decision.