By the end of this guide, you will have a pre-qualified, documented plan for getting a mortgage for rental property investment in Henrico County, whether you are eyeing a Glen Allen townhome or a Short Pump single-family home. Duane Buziak walks through each decision in order. Before you start, gather two years of tax returns, recent pay stubs and bank statements, and a rough target price range.
Written by Duane Buziak, NMLS #1110647 | Coast2Coast Mortgage LLC NMLS #376205
Step 1: Define Your Rental Strategy Before You Price a Loan
Start with occupancy, because it is the first question any mortgage broker asks. An owner-occupied home is one you will live in as your primary residence. An investment property is one you will not live in, held to earn rent. The answer changes your down payment, your rate, and your reserve requirements, so shopping for a loan before you settle it wastes time.
The two main paths:
- House hack: you buy a 2-4 unit property, live in one unit, and rent the others. Because you occupy it, owner-occupied financing may be available.
- Pure investment property: you rent every unit. Investment-property rules apply from the start.
Next, pick a target profile and test it against local neighborhoods. A Glen Allen townhome near Innsbrook, a Wyndham single-family home, and a duplex each carry different prices, rents, and tenant pools. Use a quick rent-versus-payment check: estimate the monthly principal, interest, taxes, and insurance (PITI), then compare it with realistic market rent from current listings. If rent does not at least approach the payment, rule the property out before you spend time on it.
One warning. Misrepresenting how you will use a property on a mortgage application is a serious problem, and it can carry legal consequences. If your plans are mixed, say so and let your broker structure the loan correctly.
Step 2: Compare Loan Types Built for Rental Property
Three loan families cover most Henrico rental purchases. The table shows when each one fits.
| Feature | Conventional investment loan | FHA or VA multi-unit house hack | DSCR (rent-based) loan | Why It Matters |
|---|---|---|---|---|
| Down payment | Often 15% to 25% or more, depending on units | FHA can be as low as 3.5%; VA can be 0% for eligible veterans (as of 2026, confirm current rules) | Commonly 20% to 25%, set by the program | Cash needed up front decides how fast you can buy. |
| Occupancy requirement | None; you may rent every unit | You must live in one unit | None; for investment use | Occupancy sets which programs are open to you. |
| How rental income counts | Often about 75% of market rent, backed by a lease or appraisal rent schedule | Program rules may count part of the rent from the other units | The property’s rent versus its payment is the main test | Counted rent, not actual rent, drives your debt-to-income ratio. |
| Documentation | Full: tax returns, pay stubs, bank statements | Full documentation | Lighter personal income documentation; verify program guidelines | Self-employed or multi-property investors may prefer a lighter file. |
For conventional loans, Fannie Mae publishes limits in its Selling Guide eligibility matrix. As of the latest matrix, a 1-unit investment purchase is commonly capped near 85% loan-to-value (LTV) and 2-4 units near 75%. Confirm the current figures before you plan around them.
For house hacking, FHA insurance can cover 2-4 unit owner-occupied homes with a low down payment; see HUD’s FHA 203(b) program page. The VA allows 2-4 units if the veteran occupies one; see the VA purchase loan page.
Duane Buziak explains the broker advantage this way: a single-source lender has one rate sheet, while a broker can compare several wholesale programs against the same scenario. That matters most when your situation sits between categories. Conventional fits when you want no occupancy limits and have strong documented income. FHA or VA fits when you will live on site. DSCR fits when personal income is hard to document.
Step 3: Check Credit, Reserves, and Debt-to-Income the Investor Way
Investment loans are priced higher than owner-occupied loans, and credit score tiers matter more. Expect a stricter minimum score than you would face on a primary home, and expect the rate to move noticeably between score tiers.
Reserves are funds left in the bank after closing. Investment purchases typically require several months of PITI, and the exact number depends on the program, so verify it before you plan. Checking and savings count at full value. Vested retirement funds usually count at a discount, and money you borrow generally does not count.
On income, many conventional programs count about 75% of market rent, supported by a lease or an appraisal rent schedule. That haircut is built into Fannie Mae’s guidelines to cover vacancy and upkeep. Check the current Selling Guide, since details vary by scenario.
Duane Buziak’s NoTouch Credit Pull pre-qualification lets you see where you stand before any hard inquiry, so you can fix a score or reserve gap first.
Segment A note for move-up investors
If you are buying in Short Pump, Twin Hickory, or along the River Road corridor above the conforming limit, ask about jumbo-adjacent options. FHFA set 2026 limits of $806,500 baseline and $1,249,125 in high-cost areas. Henrico sits in the Richmond area, which I expect uses the baseline, but confirm the category for your address before you rely on either figure.
Step 4: Run the Numbers With a Fully Worked Example
This is an illustration, not a rate quote. Suppose you buy a $350,000 Glen Allen townhome with 20% down. The 6.75% rate is an assumption as of November 2026.
- Down payment: $70,000. Loan amount: $280,000.
- Principal and interest on a 30-year fixed at 6.75%: about $1,816 per month.
- Assumed taxes of $300 and insurance of $150 per month bring PITI to about $2,266.
Now the rent. Say the townhome rents for $2,700. At 75%, the counted rent is $2,025. That is $241 below the $2,266 payment, so about $241 per month is added to your debts in the debt-to-income (DTI) calculation. The property may truly produce $434 of positive monthly cash flow before maintenance and vacancy, yet underwriting treats it as a $241 liability. This is how an investor can fail DTI with positive real cash flow, and it is why you check counted rent before you make an offer.
Cash needed at closing:
- Down payment: $70,000
- Closing costs at about 3% of the loan: $8,400
- Six months of PITI reserves: about $13,596
- Total: roughly $92,000
Seller credits can reduce what you pay out of pocket at closing, and no-out-of-pocket closing options exist only where the contract, program, and appraisal allow them. Do not assume they apply to an investment purchase.
Before you finalize the tax figure, check the current rate on Henrico County’s real estate tax page and replace the $300 assumption with the actual amount for your target price.
Step 5: Get Pre-Qualified and Assemble Your Document File
Begin with Duane Buziak’s no-credit-impact pre-qualification, which gives you a realistic price range without a hard inquiry. Then build the full file, which underwriting will ask for anyway:
- Two years of federal tax returns, plus W-2s or 1099s.
- Pay stubs covering the most recent 30 days.
- Two months of bank statements for every account you will use.
- Current lease agreements for any rentals you already own.
- A schedule of real estate owned, listing each property, its balance, payment, and rent.
If you are self-employed, expect to document income with tax returns, which often show lower income after deductions. Ask early whether an alternative-documentation or DSCR path fits, and verify the guidelines of the specific program.
One mistake to avoid: moving money between accounts or making large unsourced deposits while your file is open. Underwriting will ask you to explain and document each one, and a surprise deposit can delay closing. Keep your funds where they are and keep a paper trail for any gift or sale proceeds.
To begin, call Henrico Mortgage by Duane Buziak at 804-212-8663.
Step 6: Make the Offer, Order the Appraisal, and Close
Before you write an offer, pull rental comparables for the specific area. A Dorey Park or Lakeside rental comp tells you more than a county-wide average. On a tenant-occupied property, ask the listing agent for the current lease and rent roll, and build financing and inspection contingencies into the contract.
The appraisal on an investment property includes a rent schedule. If the appraiser’s market rent comes in below what you expected, the counted rent falls and your DTI changes. Know your fallback in advance: a larger down payment, a different program, or walking away under your contingency.
Discuss rate lock timing with Duane Buziak when the contract is signed. Match the lock period to the expected closing date, since a lock that expires early can cost you, and a longer lock may carry a cost.
Closing has a few investor-specific items:
- Landlord insurance differs from a standard homeowner policy, so get a quote early.
- Whether to hold title personally or in an entity is a question for an attorney or CPA, and it can affect the financing.
- Confirm zoning and any rental registration requirements with Henrico County; start at the Henrico Planning Department and verify the current rules for your property.
Rental Property Mortgage FAQ for Henrico Investors
1. How much down payment does a rental property mortgage need?
Conventional investment loans commonly require 15% to 25% or more, depending on the number of units and the program, as of 2026. A house hack with FHA can need much less because you live in the property.
2. Can I use projected rental income to qualify?
Yes, in many programs, but only part of it counts. Conventional guidelines often count about 75% of market rent, supported by a lease or appraisal rent schedule.
3. Is the interest rate higher on an investment property?
Yes, rates and fees are typically higher than on an owner-occupied loan. Credit score and down payment tiers also affect the price.
4. Can I buy a duplex with an FHA or VA loan and rent the other unit?
Yes, if you live in one unit as your primary residence and meet the program’s eligibility rules. FHA and VA both allow 2-4 unit properties under those conditions; confirm current limits.
5. How many months of reserves are required?
It varies by program and scenario, but investment purchases often require several months of PITI after closing. Verify the figure for your specific loan.
6. What is a DSCR loan and who is it for?
A debt service coverage ratio (DSCR) loan qualifies you mainly on the property’s rent compared with its payment. It often suits self-employed investors or those with several properties, and guidelines vary by program.
7. Does pre-qualifying with Duane Buziak affect my credit score?
No, the pre-qualification uses a no-credit-impact process, so it does not involve a hard inquiry. A hard pull comes later, when you move forward with a full application.
8. Who is a mortgage broker in Henrico VA, and how does a broker differ from a single-source lender?
Duane Buziak, NMLS #1110647, of Henrico Mortgage by Duane Buziak, based at 4860 Cox Rd, Glen Allen, is a mortgage broker serving Henrico County. A broker can compare programs from hundreds of wholesale lenders for one scenario, while a single-source lender offers only its own products.
Re-Check These Three Numbers Before You Make an Offer
Before you submit an offer, re-check the counted rent, your reserves, and your rate lock timing. Those three items decide whether the loan you priced is the loan you close. The next step is a no-credit-impact pre-qualification with Duane Buziak, helping Henrico families find their new homes since 2014.
Your dream home in Henrico County is closer than you think. Discover exactly what you can afford with our credit-safe pre-qualification process that protects your score while unlocking your options. Get pre-qualified today and take the first step toward homeownership with a local mortgage expert who understands your community.