CHICAGO, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Rate, a leading financial services provider in the mortgage industry, proudly announces the launch of a comprehensive suite of investment property financing solutions for independent and small business owners. These offerings are designed to support buyers as both aspiring and established real estate investors with industry-leading pricing and rapid access to capital.
Trends in property investment reveal significant growth and involvement among taxpayers and small investors over the last few years. According to CoreLogic, after a dip in the first half of 2024 as mortgage rates and home prices remained elevated, the quarterly U.S. home investor share grew by 2% and is expected is expected to remain steady in 2025, at around 25% of all home sales.
The long term growth is echoed in the IRS data, showing that the number of taxpayers claiming rental income has been increasing at an annual rate of 7.6% since 2006, reaching 16.8 million individuals. Among these investors, 47% are small-scale, owning 3-9 properties, while 36% are medium-scale, with portfolios of 10-99 properties. Furthermore, rental income is derived from 17.7 million properties, highlighting the substantial scale of the rental property market. Rate is committed to serving everyday Americans and small business owners, who are emerging as a rising percentage of those making these purchases and being at the forefront of this trend.
Rate's full suite of products is designed for everyday Americans seeking to own investment properties and achieve financial independence. Whether it's their first or their twentieth investment, borrowers will benefit from a one-stop shop and state-of-the-industry tools for all their financing needs. Options for 1-4 unit properties include the industry-leading MaxInvest and DSCR (Debt Service Coverage Ratio) programs. Beyond Residential financing the company is best known for, Rate can arrange financing for Residential/Commercial which includes apartment buildings, mixed use, storage facilities, and even strip malls and warehouses.
Today's announcement follows the company's earlier launch of its first Residential Mortgage-Backed Securities (RMBS) deal of 2024 as the first non-bank lender to re-enter the securitization space for jumbo loans since the pandemic. Both products reflect the company's commitment to delivering products and solutions that support a broad array of homebuying ambitions and profiles.
"Our commitment to helping everyday Americans achieve their goals is unwavering. We continue to find new and better ways to serve small business owners and real people trying to support their families,” said Victor Ciardelli, CEO of Rate. "We offer the best tools in the industry, a streamlined tech-enabled process with fast access to cash and minimal paperwork, making real estate investment accessible to everyone.”
"The investment property mortgage industry is traditionally serviced by Fannie, Freddie, small and hard money lenders, leading to limited liquidity and tech advancement, and a disjointed high-cost process,” said Kate Amor, EVP and Head of Enterprise Products for Rate.
Focus on Small Business Owners
Rate recognizes that small business owners often face unique challenges when seeking financing for investment properties. Traditional lenders overlook this group, focusing instead on first-time homebuyers or large commercial clients. Rate aims to fill this gap by providing custom solutions that address the specific needs of small business owners and individual investors.
"Our goal is to support Main Street America-normal Americans who want to achieve financial security through real estate investment,” added Amor. "These are not the institutional investors taking housing supply, but everyday people and small business owners looking to build a better future for their families. We are committed to providing them with the tools and resources they need to succeed.”
Market Context:
The real estate investment market has been underserved, often relying on small lenders and hard money lending. Rate's new suite of solutions aims to bridge this gap by providing sophisticated, tech-forward, and accessible financing options. With expansive guidelines and a focus on speed and convenience, Rate is set to redefine the market for real estate investors.
"Recent agency loan-level pricing adjustments have made it extremely difficult to find rate and pricing scenarios that make sense for these small investors, particularly when Fed rate cuts haven't lowered mortgage rates as many hoped,” said Jeremy Collett, Chief Capital Markets Officer for Rate. "We're using our strong product development acumen to find new ways to offer competitive rates for our everyday real estate investor customers and their unique business needs."
About Rate:
Rate Companies is a leader in mortgage lending and digital financial services. Headquartered in Chicago, Rate is the #2 retail mortgage lender in the U.S., with over 850 branches across all 50 states and Washington D.C. Since its launch in 2000, Rate has helped more than 2 million homeowners with home purchase loans and refinances. The company has cemented itself as an industry leader by introducing innovative technology, offering low rates, and delivering unparalleled customer service. Honors and awards include Best Mortgage Lender for First-Time Homebuyers by NerdWallet for 2023; HousingWire's Tech100 award for the company's industry-leading FlashClose℠ digital mortgage platform in 2020, MyAccount in 2022, and Language Access Program in 2023; No. 2 ranking in Scotsman Guide's 2022 list of Top Retail Mortgage Lenders; the most Scotsman Guide Top Originators for 11 consecutive years; Chicago Agent Magazine's Lender of the Year for seven consecutive years; and Chicago Tribune's Top Workplaces list for seven straight years. Visit [rate. com](https://www.rate.com) for more information.
Media Contacts:
Kendall Allen Rockwell
Broadsheet Communications
For Rate
