ATTENTION: Self-Employed, Jumbo & Non-QM Buyers in Katy, TX (and across Texas) — Get Pre-Qualified FAST
Bill Rapp, Mortgage Originator:
NMLS 228246 | Serving Katy & the Texas Region
Expertise in Self-Employed, Jumbo, & Non-QM Mortgages.
Your Texas Mortgage Specialist in Katy & Beyond!
Get Your Katy, TX Mortgage Quote (Self-Employed • Jumbo • Non-QM)
Enter your name and email to get your options and next steps:
WITH PROVEN STRATEGIES & PROVEN RESULTS
HERE'S WHAT MY CLIENTS SAY:
What People Are Saying:
Excellent Service
Bill is an exceptional loan officer. He helped us to purchase our home with very personal and professional service. He helped us navigate the whole process from start to closing without any problems. We didn't think we're qualified to purchase a house, but Bill went above and beyond to find a way to help us achieve our goal. He always responded very quickly with our requests, he would come back with different options with comparison chart to clearly indicate how much we need for down payment, monthly payments, interest rates, closing costs etc.
We would highly recommend Bill to anyone in need of lending services. In fact, we have already recommended Bill to one of our friends on purchasing a house.
--- David Chan - Houston, TX
Bank Statement Lending!
William Rapp of Network Funding, L. P. was very professional and I felt comfortable in dealing with him. I will definitely recommend him to family and friends.
--- Ian F - Missouri City, TX
Professionalism - Expert In Home Style Loan
Bill is an expert in the topic, his explanations and online material make a difference and he is always there from the beginning to the end. He is committed to make thing happen.
--- Felipe Caldern & Carolina Angel Gutierrez
Great Service!
Bill Rapp's handling of our loan (even though out of state) was unparalleled to any service I have been through prior, including 3 different real estate transactions and multiple refinances. Extremely quick close, with great options and flexibility for my families needs. All around A+
--- Chris & Beth Sheehan - San Jose, CA
Knowledgeable and Responsive!
Bill was a pleasure to work with and he made the loan process fairly easy. He answered all questions I had very quickly and was straight forward in doing it. I would recommend Bill to others.
--- Wes Brady - Richmond, TX
Very professional and always returned our calls!
Bill takes a lot of pride in his job and is very dependable. They were very patient and understanding. He went out of his way and explained all my questions and concerns. They were very professional and returned my phone calls and emails. He did a great job and I fully recommend him.
--- Therese, Malcom & Shirley Teixeira - Katy, TX
Great Job!
Bill helped us out from beginning to end of loan process. The loan closed in a timely manner as Bill worked hard with bank to get our to the final steps.
--- Kamal & Theresa Wilson - Hartford, CT
Avid Problem-Solver and Absolute Pleasure to Work With!
Bill Rapp worked very hard to ensure that we closed our loan and were able to move into our new home. He always had alternatives to any problems we encountered while closing. He worked with us from the beginning identifying solutions to any problems that we were having. He was an absolute pleasure to work with!
--- Nikita Rayani & Sanit Tejani - Houston, TX
Awesome to work with!
Being a first-time buyer I came in with lots of questions and concerns. Bill was always available for any questions I had and answered everything to my satisfaction. Bill made the loan process so painless that I could still concentrate on other things. We ended up closing early which made things even better. If you are in need of a lender and want someone who is very approachable and stays on top of your loan then Bill is your guy.
--- Cesar Raya - Richmond, TX
Loan Declined by my bank, and he saved the day!
Bill, did an amazing job helping me close on my house. He took the reigns and reassured me the best route to take to help close. He was accountable, thorough and trustworthy. I will continue to work with Network Funding, L.P. when it comes to home buying in the future because of the quality of service Bill gave.
--- Jacob Smith - Boerne, TX
Bill Rapp Will Definitely Make It Happen!
Bill is the most kind, patient and helpful person I have ever known. He answers his phone calls and emails promptly. You can ask him a million questions, and he will answer each and every one of them. Before I started working with Bill, I had been turned down for a home loan, because of some past credit issues I had, plus I was a single mother. However, once I started working with Bill, he was able to quickly get me a home loan, with a good interest rate. I would recommend that you call him, as he will help you.
--- Corinne Wilson - Roselle, NJ
Knowledgeable, Honest, Trustworthy, and Reliable!
"I will definitely keep you in mind. If anyone I know needs financing, I will send them your way!"
--- Jon & Andrea Saleem, CRPC Financial Advisor - Houston, TX
Best Dam Mortgage Guy a man could know!
"Hands down the best loan experience to date!"
--- Gabe & Chelsea Jackson - Pearland, TX
Phenomenal, Hard Working and Never Quits!
Had a stupid foreclosure that could have been avoided if ex’s attny would have sent my buy out offer. So Bill was able to push this through with a 4 year foreclosure. He worked his butt off, was very diligent with his communication; and was very professional talking to me even when I was screaming and/or crying at him. Highly recommend this lender. He really go to the ends of the earth to help you!
--- Liz Keeter - Harlingen, TX
Exceptional customer service!
Bill is the most kind, patient and helpful person I have ever known. He answers his phone calls and emails promptly. You can ask him a million questions, and he will answer each and every one of them. Before I started working with Bill, I had been turned down for a home loan, because of some past credit issues I had, plus I was a single mother. However, once I started working with Bill, he was able to quickly get me a home loan, with a good interest rate. I would recommend that you call him, as he will help you.
--- Isha Lopez & Mauricio Garcia - Houston, TX
Service with a capitol S
Bill went above and beyond at every turn. He worked late on Saturday, he worked late all the time. We wanted to close ASAP and he really helped make it happen for us.
--- Jeff & Wendy Heger - Houston, TX
Best Buying Experience!
I would would highly recommend going with Network Funding LP. As a first time home buyer I didn't know what to expect. Bill Rapp was very helpful in answering all my questions and guided me through all ghe steps. I couldn't have asked for a better buying experience!
--- Tabitha Turner - Humble, TX
Would recommend him and use him again!
Very involved and professional . Kept me informed and up to date on everything that was going on Went with me closing and was very helpful and knowledgeable.
--- Kathy Ward - Houston, TX
Great experience!
Well I meet bill back in December 2016 he got recommended by my real estate agent we had a house in sight and started the process to get approved but we fail due to my work history and credit bill told me not to give up and put me in contact with a credit repair company they help me bring my score up and bill walk me thru the process of getting a new line so this time around we got approved before looking for our house after we found it we still had a couple of hick up but with bills help on Sunday 6-18-17 to be exact Father's Day bill called me to give me the great news that we had got approved and the closing date was as scheduled bill was more than just a lender to my family he became a friend and I'm alway going to have him in mind for any other financial situation.
--- Alejandres Felimon - Richmond, TX
I really liked his attitude!
I wouldn't usually say this but the way he had handled my mortgage was really pleasant. I personally enjoyed the time spent with him while we discussed feasible rates. He's a great man with a great personality and he offered really low interests as well. Definitely recommend him to others.
--- Tom Troiano - Atlantic City, NJ
He's nothing short of a miracle!
I'm a self-employed businessman and had him figure out the mortgage of the house after 30% down payment. The interest rates I received were incredibly low given what I had thought of earlier. One other important thing to note was that I hadn't really taken any loans earlier, so I had no credit history. He helped me out with all that as well so I can't really call him anything else but a miracle.
--- Fran Suarez - Cleveland, OH
He's really helpful!
I made a bid to him and the very same day he gave me an offer which I couldn't resist. It was too intimidating with those incredibly low interest rates and all, thoroughly recommend him.
--- Kenny Mickle - Houston, TX
Expeditious!
Bill was very expeditious and made it real easy going through the loan process. I felt he was on top of things.
I deal with investment properties and will more than likely call on him again.
--- Wayne King - Pensacola, FL
Bill was great!
Bill made us feel like a friend all the way thru the process. He was patient and explained everything he needed clearly. He was available ANYTIME we had questions or needed more information. Hopefully we won’t go thru this process again anytime soon, but if we do - we’d choose Bill! =)
--- Barbra & Nick Grimmer - Austin, TX
Great broker!
Bill was a great broker to work with. As first time home buyers we had many questions about the process, Bill took the time to help us even calling us back on weekends with answers. I would not hesitate to recommend him to anyone looking for a broker to work with.
--- Murray & Lisa Turner - Pensacola, FL
Outstanding service!
I couldn't have been more pleased with Bill's level of service. He made what is typically a lengthy, arduous process far quicker and easier at every turn. I'm extremely comfortable recommending Bill to friends and family, and will definitely utilize his services again!
--- Jim Lipari - Austin, TX
Self-Employed, Jumbo, and Non-QM Mortgages in Katy, TX and Texas
Getting a mortgage as a self-employed borrower or through Jumbo and Non-QM programs in Katy and the wider Texas area is simpler than you might think. This guide covers what these loans are, who they help, and when they make sense.
What Is a Jumbo or Non-QM Loan?
A jumbo mortgage—also called a non-conforming loan—is any mortgage that exceeds the loan limits set by Fannie Mae and Freddie Mac.
Fannie Mae and Freddie Mac, established by Congress, support liquidity and stability in the mortgage market by buying loans that meet strict requirements for:
Loan amount
Credit score
Down payment
Debt-to-income ratio
Post-closing reserves
Loans exceeding these limits are considered non-conforming.
When Do You Need a Jumbo Loan?
You’ll need a jumbo loan when the loan amount goes above the conforming limit specific to Katy, TX, or other Texas regions.
How Jumbo and Non-QM Loans Are Underwritten
Jumbo loans use the same essential criteria as conventional loans:
Credit score
Down payment
Debt-to-income ratio (DTI)
Cash reserves after closing
However, jumbo loans often offer greater flexibility in evaluating these factors.
Credit Scores
Most jumbo programs accept credit scores starting at 660, although higher scores get better rates. Borrowers with scores above 760 generally secure the best terms.
Cash Reserves
These loans typically require more substantial reserves than conforming loans.
Standard requirement: 12 months of reserves
Reserves may be split between cash and retirement accounts
Exceptions can apply for strong income, low DTI, or sizable down payments.
Flexible Features for Self-Employed and Jumbo Loan Borrowers
Higher DTI allowances
Jumbo loans may accept higher DTI ratios if backed by strong reserves or equity.
Income Verification for Self-Employed
Self-employed applicants in Katy, TX, can often qualify with just one year of tax returns if they demonstrate stable business performance and industry experience.
Lower Down Payments Without Mortgage Insurance
Certain jumbo programs allow for as little as 10% down without mortgage insurance, with slightly higher rates and stricter DTI limits.
Piggyback Loan Options
Some buyers can combine first and second mortgages to reduce down payments to as low as 5%. These specialized options vary by lender.
Who Benefits from Jumbo and Non-QM Loans in Texas?
These loans are ideal for high-income earners and self-employed professionals in Katy and Texas who want to keep cash liquid rather than tied up in down payments. This group is often called HENRYs: High Earners, Not Rich Yet.
Typical borrowers:
Earn $250,000–$500,000+ per year
Maintain strong credit
Have significant retirement and investment assets
Prefer liquidity over large upfront cash requirements
Tax Considerations
Jumbo mortgages don’t typically offer special tax advantages.
Mortgage interest deduction applies only to the first $1 million of mortgage debt. Interest on amounts above this is not deductible.
Borrowers might compare:
One jumbo mortgage
vs.
Multiple smaller loans or alternative structures suited for Texas borrowers
Consult a tax advisor for personalized advice.
🏠 Investment Property Loans: Complete Investor's Guide 💰
🏠 Investment Property Loans: Complete Investor's Guide 💰
💵 Investment Property Loans: How to Finance Rentals 🏡
____________________________________________________________________________
Investment Property Loans: How to Finance Your Next Rental Property
Real estate investing can be one of the most effective ways to build long-term wealth. Rental properties can generate monthly cash flow, provide potential tax advantages, and appreciate over time.
But before you purchase your first rental home—or expand an existing portfolio—you need to understand one critical component of successful investing: investment property financing.
Not all investment property loans are created equal.
Some programs focus heavily on your personal income, employment history, and debt-to-income ratio. Others evaluate the property's rental income and its ability to support the mortgage payment.
Choosing the right financing structure can affect your cash flow, borrowing capacity, and ability to purchase additional properties.
At Medallion Funds, we help real estate investors evaluate multiple mortgage programs, including conventional investment property loans, DSCR loans, bank statement mortgages, and financing for small multifamily properties.
Let's explore how investment property loans work and how to choose the right financing strategy.
What Is an Investment Property Loan?
An investment property loan is financing used to purchase or refinance real estate primarily intended to generate income or investment returns rather than serve as your primary residence.
Common investment property types include:
·Single-family rental homes
·Duplexes, triplexes, and fourplexes
·Long-term rental properties
·Eligible short-term vacation rentals
·Properties purchased for renovation and resale
·Small multifamily investment properties
Financing options depend on the property's intended use, occupancy, condition, number of units, and borrower qualifications.
For example, a conventional mortgage may work well for a borrower purchasing a single-family rental home with documented W-2 income.
An investor with multiple rental properties might benefit from a DSCR loan that focuses primarily on rental income instead of traditional personal income calculations.
The key is matching the mortgage program to the investment strategy—not forcing every investment into the same financing structure.
Five Types of Investment Property Loans
1. Conventional Investment Property Loans
Conventional mortgages are often an attractive starting point for investors with strong credit, documented income, and manageable existing debt.
These loans are typically used for eligible 1–4-unit residential investment properties.
Potential advantages:
·Competitive long-term fixed-rate options
·Familiar underwriting standards
·Financing for single-family homes and small multifamily properties
·Potentially lower borrowing costs than certain non-QM programs
Important considerations:
Conventional investment property loans generally require larger down payments than owner-occupied mortgages.
A 15% down payment may be available on certain eligible one-unit investment purchases, while other property types and loan scenarios may require 20%–25% or more.
Lenders also evaluate credit scores, debt-to-income ratios, cash reserves, existing financed properties, and rental income documentation.
Conventional financing can be especially useful for investors early in their portfolio-building journey.
2. DSCR Loans: Qualify Using Rental Income
One of the most useful financing tools for real estate investors is the Debt Service Coverage Ratio (DSCR) loan.
Instead of relying primarily on personal W-2 income or tax returns, many DSCR programs focus on the rental property's income relative to its required debt payments.
The basic formula is:
\[ \text{DSCR}=\frac{\text{Qualifying Rental Income}}{\text{Qualifying Debt Payments}} \]
For many residential DSCR loan programs, qualifying debt payments include principal, interest, property taxes, insurance, and applicable association dues.
Example:
Property financials | Monthly amount |
Qualifying rental income | $3,000 |
Principal and interest | $1,800 |
Property taxes and insurance | $600 |
Total qualifying payment | $2,400 |
DSCR | 1.25 |
A DSCR of 1.25 means the property's qualifying rental income is 125% of the qualifying monthly debt payment.
Some lenders prefer ratios of 1.15–1.25 or higher, although program requirements vary. Certain programs permit ratios below 1.0 with additional restrictions or pricing adjustments.
Why investors like DSCR loans:
·Less dependence on traditional personal income documentation
·Potentially useful for self-employed investors
·Financing designed specifically for rental properties
·May accommodate investors with multiple financed properties
·Certain programs allow entity ownership, subject to lender requirements
However, DSCR loans can carry higher interest rates, prepayment penalties, or larger down payment requirements than conventional loans.
3. Bank Statement Loans for Self-Employed Investors
Traditional mortgage underwriting can be challenging for business owners and self-employed investors.
Business deductions may reduce taxable income, making it difficult to qualify using tax returns alone.
Bank statement loan programs may allow qualifying income to be calculated using eligible personal or business deposits.
Depending on the lender, documentation may include 12–24 months of bank statements, business information, and supporting financial records.
These programs can be especially useful for entrepreneurs, independent contractors, consultants, and business owners.
However, not every bank deposit qualifies as income, and lenders may apply expense factors to business deposits.
4. Portfolio Loans
Portfolio lenders may retain loans on their own balance sheets rather than sell them into the conventional secondary mortgage market.
This can allow greater underwriting flexibility for certain borrowers and property types.
Portfolio loans may help investors who have multiple rental properties, complex financial structures, or financing needs that do not fit standard agency guidelines.
Some lenders also offer blanket financing, allowing multiple investment properties to be financed under one loan.
Terms vary significantly and may include adjustable rates, balloon payments, or different amortization schedules.
5. Fix-and-Flip and Bridge Loans
Not every investment property is ready for a traditional long-term mortgage.
Properties requiring substantial renovations may need short-term acquisition and rehabilitation financing.
Fix-and-flip or bridge loans may provide funds for purchasing, renovating, and repositioning a property.
These loans frequently feature shorter terms, higher borrowing costs, and more restrictive exit requirements.
Investors should establish a realistic plan for selling or refinancing before accepting short-term financing.
How Much Down Payment Do You Need for an Investment Property?
The required down payment depends on the mortgage program, property type, credit profile, and lender.
Loan program | Illustrative down payment |
Conventional, eligible one-unit rental | 15%–25% |
Conventional, 2–4-unit investment property | Often 25% |
DSCR investment loan | Commonly 20%–25%+ |
Bank statement investment loan | Often 20%–30% |
Portfolio investment loan | Lender-specific |
Fix-and-flip financing | Based on cost, value, experience, and lender |
These are illustrative ranges, not guaranteed loan terms. Certain programs and transactions require more equity.
Example: Purchasing a $350,000 Rental Property
Investment property down payment
20%
15%
20%
25%
30%
Down payment
$70,000
Loan amount
$280,000
Illustrative purchase financing only. Closing costs, reserves, lender fees, and other expenses are additional.
The down payment is only one component of your cash requirement.
Investors should also budget for appraisal fees, closing costs, inspections, property repairs, insurance, and post-closing liquidity.
Credit Score Requirements for Investment Property Loans
Your credit score affects both loan eligibility and pricing.
Generally, stronger credit may help you obtain more favorable interest rates, lower fees, and additional financing options.
Conventional loans are subject to current agency and lender underwriting standards. DSCR and non-QM lenders often establish their own minimum credit requirements, frequently starting around the low-to-mid 600s, although some programs require higher scores.
A borrower with a 740 credit score may receive materially different pricing from someone with a 660 score, even when both qualify.
Investor tip: Review your credit before submitting offers, particularly if you are carrying high credit card balances or planning multiple property acquisitions.
How Lenders Calculate Rental Income
Rental income is one of the most important variables in investment property financing.
However, different loan programs calculate qualifying rental income differently.
Conventional lenders may use lease agreements or appraisal-supported market rents, applying agency-prescribed adjustments such as a 75% rental income factor in applicable circumstances.
DSCR lenders may use actual lease income, appraiser-supported market rent, or another program-defined rental income measure.
For short-term rentals, some specialized programs consider historical revenue or approved rental income projections, often with additional restrictions.
A property generating $3,000 per month in gross rent will not necessarily contribute $3,000 toward mortgage qualification under every program.
Understanding the lender's calculation method before making an offer helps prevent financing surprises.
Investment Property Cash Flow: What Investors Must Calculate
Qualifying for a mortgage does not automatically mean a property is a good investment.
Investors should evaluate the complete operating economics.
Important expenses include property taxes, insurance, maintenance, vacancies, property management, utilities, association fees, and capital improvements.
Real-World Example: A $300,000 Rental Property
Assume an investor purchases a single-family rental property for $300,000 with a 25% down payment.
The investor finances $225,000 using an illustrative 30-year fixed mortgage at 7.50%.
Illustrative monthly rental analysis
Monthly rent | $2,500 |
Mortgage principal and interest | −$1,573 |
Property taxes and insurance | −$450 |
Maintenance reserve | −$125 |
Vacancy allowance | −$125 |
Property management | −$200 |
Estimated monthly cash flow | $27 |
Rounded illustrative figures. Excludes additional capital expenditures, leasing costs, utilities, HOA dues, and other potential expenses. The 7.50% rate is a hypothetical assumption, not a current rate quote.
Although this property generates $2,500 in monthly rent, the projected cash flow is only about $27 per month before additional expenses.
That is a very thin margin.
A single major repair or extended vacancy could eliminate months of projected profits.
This example demonstrates why cash flow analysis is just as important as mortgage qualification.
DSCR Loans vs. Conventional Loans: Which Is Better?
Feature | Conventional loan | DSCR loan |
Primary qualification | Personal income and debt | Property rental income |
Tax returns | Often required | Often not required for personal income |
Rates | Often lower | Often higher |
Down payment | Program-dependent | Commonly 20%–25%+ |
Investor portfolio growth | Subject to agency limits | May offer greater flexibility |
Prepayment penalties | Generally not permitted on covered consumer mortgages | May apply to business-purpose loans |
Best suited for | Investors with qualifying personal income | Investors emphasizing property cash flow |
Neither option is universally better.
An investor with strong W-2 income purchasing a first rental may benefit from conventional financing.
An investor who owns multiple properties or has complex self-employment income may find DSCR financing more practical.
The optimal solution depends on total borrowing costs, qualifying income, cash flow, property performance, and long-term goals.
Can You Buy a Multifamily Investment Property?
Yes.
Investors can purchase duplexes, triplexes, and fourplexes using eligible residential investment property financing.
Properties containing five or more residential units generally require commercial multifamily financing.
There is also an important distinction between investment properties and owner-occupied multifamily properties.
For example, a qualifying buyer who intends to live in one unit of a duplex may be eligible for an owner-occupied mortgage with a lower down payment than a non-owner-occupied investor loan.
FHA financing may allow eligible owner-occupants to purchase 2–4-unit properties with a minimum 3.5% down payment, subject to FHA requirements, including applicable self-sufficiency rules for three- and four-unit properties.
FHA financing is not intended for purchasing a purely non-owner-occupied rental property.
Five Mistakes Investors Should Avoid
1. Focusing only on the interest rate. Compare points, lender fees, prepayment provisions, loan terms, and total borrowing costs.
2. Underestimating property taxes and insurance. Texas investors should pay particular attention to potential reassessment and insurance costs.
3. Ignoring reserves. Vacancies, maintenance, and unexpected repairs can quickly consume projected profits.
4. Choosing short-term financing without an exit strategy. Refinancing is not guaranteed, particularly if property values, interest rates, or rental income change.
5. Waiting until after signing a purchase contract to discuss financing. Early lender evaluation can help identify issues with property condition, rental income, loan structure, or borrower qualifications.
How to Get Approved for an Investment Property Loan
Before making an offer, investors should organize their financial information and review the financing structure with a mortgage professional.
Depending on the loan program, lenders may request:
·Credit authorization and identification
·Income documentation or bank statements
·Current mortgage statements
·Asset statements and available down payment funds
·Existing rental property information
·Lease agreements or projected market rents
·Property purchase contract
·Appraisal and insurance information
DSCR loans may require less personal income documentation, but lenders still evaluate credit, assets, property condition, and program eligibility.
The earlier you understand the requirements, the better positioned you are to negotiate and close.
Why Work With Medallion Funds?
Investment property financing becomes more complicated as your portfolio grows.
At Medallion Funds, we help investors compare mortgage structures and evaluate financing strategies based on their goals.
Whether you're purchasing your first rental home, expanding into small multifamily properties, or evaluating a DSCR refinance, our objective is to help you understand the options before committing to a loan.
As a mortgage broker and commercial real estate professional, I bring both financing knowledge and an investment-oriented perspective to these conversations.
Bill Rapp
Partner & Director of Capital Advisory | Medallion Funds
Commercial Lending Nationwide
Residential Lending in AL, CA, CO, NV & TXBottom of Form
📞 Call or Text: 281-222-0433
🌐 Website: https://billrapponline.com
🎥 Subscribe to Mortgage Viking: https://www.youtube.com/@billrapp-medallion-funds
https://www.billrapponline.com/
https://findamortgagebroker.com/Profile/WilliamRappJr28883
https://billrapp.commloan.com/
https://billrapponline.com/financingfuturescre-houston-katy
https://houstoncommercialmortgage.com/
https://author.billrapponline.com
https://doctorvideo.billrapponline.com/
https://veteransvideo.billrapponline.com/
https://mortgageviking.billrapponline.com/
https://fha203h.billrapponline.com/
https://renovationvideo.billrapponline.com
https://medallionfunds.com/bill-rapp/
https://www.amazon.com/dp/B0F32Z5BH2
https://veed.cello.so/FOmzTty6oi9
https://buymeacoffee.com/vikingente3
https://creplaybookseries.billrapponline.com
https://creplaybook.billrapponline.com/
© Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
Serving Katy, TX & all of Texas
Call or email for a fast pre-qualification for self-employed, jumbo, and Non-QM loans.
Main Office:
Medallion Funds
[email protected]
11920 Southern Highlands PKWY Suite 302 Las Vegas, NV 89141
