Investment Property Loans and Financing
We have a range of residential investment loans to meet the varying needs of investors. Whether you are planning to buy a second home or investment properties, such as one to four unit residential properties or vacation properties, we have a loan program for your unique needs. With our programs, you may be able to use your current home equity to finance buying additional property.
The needs of real estate investors are a lot different than the needs of a typical home buyer. It's important to work with a mortgage professional who understands real estate investing and financing investment properties. Our licensed mortgage specialists will help you decide what kind of investment property best suits your goals and how to finance it. All of our cases are managed by our professional team, every customer is equally important to us.
Key Fact About Investor Loans
- Even if you're familiar with how mortgage works, it's important to understand the restrictions tied to investment properties as they often differ from owner-occupied properties and second homes.
- Down payment is usually 20%, but you may even need to put 30% or more down on an investment property depending on different factors such as your credit profile, documentation type, and the value of the property.
- Investing in real estate is like any kind of investment - it's wise to do your homework and assess both the benefits and the risks involved.
- Typically, residential investment loans will extend for up to thirty years and the rate is generally some of the lowest rates you can find, usually between .5% and 1% higher than you'll obtain for a home mortgage.
Qualifying Standards & Processes Include:
- Credit Score: On a scale from 300 to 850, you will typically need to have a 700+ to obtain a investment property loan.
- Debt to Income: Your debt to income ratio is a number used by lenders to determine your ability to pay a certain debt based on how much income you make, typically in a given month.
- Loan to Value: A Loan-To-Value Ratio, also referred to as LTV Ratio, is a comparison between the value of your loan and the value of your property. Gone are the days when many lenders were offering a loan up to 125% of the value, but today, 70-80% is much more likely on investment properties.
- Landlord Experience: No Landlord experience is not required, you can purchase without any experience and still get financing if you can qualify without using the rental income. Experience is often required in order to consider the rental income if you're planning to finance the purchase of a 1 to 4 unit home.
When considering buying an investment property, there are several things to consider in order to make the right decision. We provide a variety of types of mortgages suitable for real estate investing including, 30 Year Fixed Rate Mortgages, 15 Year Fixed Rate Mortgages, Adjustable Rate Mortgages, Jumbo Mortgage, and more.
