Investment Property Loans & Financing
How do I get an Investment Property Loan?
When purchasing any kind of investment property, there a lot of things to consider. That’s why you should trust us to guide you through all of the financing information and flexible loan options.
What’s An Investment Property Loan?
Investment property loans are available for home owners looking to purchase second homes or investment properties including residential and vacation units. You may be able to use your current home equity to finance your investment property.
Why Purchase an Investment Property?
There are numerous financial incentives to owning a rental property. Beyond the cash flow you receive from you tents, you can receive additional benefits including deductions for mortgage interest, property and real estate taxes.
Before You Buy
Like all investments, you need to spend some time planning and reviewing your options. First, determine the type of property that you want to invest in. These properties can include vacation homes, rentals, condominiums and apartments buildings. Ask yourself if this is a short-term or long-term loan. It is important to consider the implications that come with some of these investments. For instance, if you are looking to purchase rental units, you need to be ready to take on the responsibilities of being a landlord. Once you have decided on a property type, research the location and market thoroughly to determine if the investment can be profitable.
Investment Loan Tips
Make a Substantial Down Payment
In order to secure traditional financing for mortgage insurance, you need to put down at least 15% as a down payment. If you are able to put down more than 25%, you may have the ability to qualify for an even better interest rate. For those unable to make the down payment, you may be able to obtain a second mortgage on the property. However, this is often a difficult process.