Can I Finance Rental Properties That Are Not Currently Leased?

Yes, but with a threshold. Rental Home Financing requires that at least 90% of the properties in your portfolio be leased at closing. The remaining 10% of units can be vacant, provided they are in lease-ready or near lease-ready condition. This means the vacant properties must be habitable and marketable to tenants without requiring major renovation or repair work.

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No application fees, no tax returns required. Most loans close in 2-4 weeks with competitive rates based on your portfolio.

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90% Occupancy Required

At least 90% of portfolio units must be leased at closing to qualify.

Lease-Ready Accepted

Vacant units in habitable, marketable condition count toward your portfolio.

Flexible Evaluation

Active lease applications and documented rental demand may be considered.

Income-Based Underwriting

DSCR calculations depend on documented lease income across the portfolio.

Free DSCR Calculator

Check if your rental property meets the .75x minimum debt service coverage ratio.

This 90% occupancy requirement exists because our loans are underwritten based on the actual rental income your portfolio generates. The debt service coverage ratio (DSCR) calculation depends on documented lease income, and a portfolio with too many vacancies will not meet our minimum cash flow thresholds. In practice, most investors applying for blanket mortgage financing already have high occupancy rates because their portfolios are generating income.

Rental property between tenants being prepared for lease-ready condition

Properties requiring only light cosmetic work between tenants are typically acceptable

What If I Have a Few Vacant Units in My Portfolio?

Having a small number of vacancies does not disqualify you. Here is how we handle common scenarios:

  • Recently turned units -- a property between tenants that is clean, repaired, and listed for rent qualifies as lease-ready
  • Minor repairs needed -- properties requiring light cosmetic work (paint, carpet, cleaning) are typically acceptable
  • Major renovation required -- properties needing structural work, roof replacement, or significant rehab will generally not qualify for inclusion in the portfolio
  • Section 8 or voucher vacancies -- units awaiting housing authority placement are evaluated on a case-by-case basis

If your portfolio is slightly below the 90% occupancy threshold, contact us to discuss your situation. In some cases, we can work with borrowers who have active lease applications pending or documented rental demand in their market. The key factor is demonstrating that your portfolio has strong income potential and that vacancies are temporary rather than chronic.

Portfolio Occupancy Requirements

  • Minimum 90% of portfolio properties must be leased at closing
  • Vacant units must be in lease-ready or near lease-ready condition
  • Recently turned units listed for rent qualify as acceptable
  • Include tenancy history for month-to-month tenants in your application

Not Sure If Your Portfolio Qualifies?

Even with a few vacancies, your portfolio may be eligible. We evaluate the full picture including market rents, lease history, and property condition.

Apply Now Call (888) 375-7977

Review the occupancy and lease requirements for our residential rental property loan programs to see if your portfolio is a fit.