Rental Property Loans

Our Offer of Flexible Investment Loans for Rental Properties

This mortgage services offer you several benefits to help you make the most of your investment. Our floor rate of 7.125% is unbeatable in the market, and you can enjoy a free 45-day rate lock with float downs available! We understand how challenging it can be to rent out a property, which is why we offer vacant properties with NO rate nor LTV hits. We make the process even easier by requiring only a 25bps STR add-on, so you can focus on earning a passive income. We consider nightly rental income for STR (NOT market rent) and do not require proof of tenant payment. To qualify for our services, you need to have a FICO score of 680 or higher, and the property value/PP should be 150k or more. Trust us to help you make the most of your investment!

Permanent Financing for Long-Term Rentals and Vacation Rentals

Are you dreaming of a healthy passive income from commercial property? Whether you’re interested in long-term rentals or short-term vacation properties, the high upfront cost may seem daunting. But don’t let that stop you from becoming a successful real estate investor. With plenty of mortgage options available, you can get started with reduced upfront costs and begin earning the income you deserve. Take the first step towards your dream today and explore your mortgage options to make your real estate investment a reality.

What Is an Investment Property?

Investment properties can provide a great source of income. They can be used in different ways, such as short-term rentals, long-term leases, or resale for a profit. Whether you plan to keep the property for a short period or many decades, investment properties can give you a stable revenue stream for years to come. They can be either residential or commercial, which gives you more flexibility. If you’re looking for a good investment opportunity, consider buying an investment property today!

What Is an Investment Property?

If you’re considering investing in rental property, a rental property loan can provide you with the funds you need to buy the property. You have different options to choose from, including long-term residential rentals, short-term vacation rentals, office buildings, and fix-and-flip properties.

It’s important to note that commercial building mortgage loans are riskier for lenders, so private lenders may charge higher interest rates. However, they also offer higher loan amounts, giving you the funding to pursue your investment goals.

You can choose between short-term and long-term loans to repay the mortgage in a way that works best for you. If you’re interested in investing in rental property, a rental property loan can be a helpful tool to make it possible.

Investment Property Loans vs. Conventional Home Loans

Let’s begin by discussing the similarities between investment property loans and conventional loans. To obtain either of these loans, you will need to complete an application form. However, the application for an investment property loan may contain different questions than the one you filled out when you purchased your home. The lender will likely be less concerned with your personal income, assets, and employment history, but may want to learn more about your investment experience and strategy. In order to assess your eligibility, your lender will check your credit score and order an appraisal. Additionally, they will initiate a title search. Now, what are the key differences between these two types of loans?

Lower Maximum LTVs

When it comes to investment property loans, the down payments required are usually much larger. You should be prepared to pay at least 25% of the property value (although this can vary depending on your credit score), as opposed to the 3% down payment often needed for some government-sponsored consumer mortgages.

Higher Interest Rates

When it comes to investment property loans, it’s important to note that the interest rates and fees are typically higher than those for traditional mortgages. You should expect them to be anywhere from 100 to 400 basis points higher. A basis point is simply a hundredth of a percent. So, for example, if a conventional mortgage has an interest rate of 6.5%, an investment property loan for the same property and borrower could have an interest rate of 7.5% or more.

Higher Reserve Requirements

You may have to provide evidence to show that you possess sufficient liquid cash reserves, which should be equal to your down payment and closing costs plus 6-12 months of your monthly principal, interest, taxes, insurance, and any association dues. In case you own more than one investment property, some lenders may require you to prove reserves on all of your financed investment properties. However, a conventional mortgage may require anywhere from 0-6 months of reserves.

Less Documentation

When applying for a conventional loan, the lender usually takes an interest in your employment history and personal income. As a part of the loan process, you will be required to submit your pay stubs and personal tax returns. Before closing the loan, the lender may ask you to confirm that you are still employed at the same job that you had when you applied for the loan.

Investing in property can be a great way to build wealth, but obtaining the right financing can be a challenge. If you’re applying for an investment property mortgage, you’ll need to be prepared to provide a lot of information, especially if you already have other investment properties in your portfolio.

However, there is some good news: some lenders will focus on the cash flow generated by the investment property itself, instead of scrutinizing your personal employment and income. This can simplify the documentation process and make it easier for you to secure the financing you need to grow your portfolio.

So if you’re looking to invest in property, don’t let the financing process hold you back. With the right lender, you can obtain the financing you need to take your investments to the next level.

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