Save More Money When Getting an Investment Loan
Start your business as a real estate investor and build money for the future.
Becoming an investor in real estate is a great way to make a “long term” profit in today’s real estate market. But getting a loan with current lending standards can be out of the reach of most investors. An investment property, one that you don’t live in but rent out, is a great way to build money for the future. If you’re looking for a short term quick flip, plan on having a large reserve of money to get started. At Integrity First Lending we specialize in long term investment planning. We want you to succeed for years.
What does it take to get an investment mortgage in today’s tighter lending standards? The only type of loan you can qualify for in a home you don’t plan on living in, is a conventional loan. Let’s look at the basic criteria for a conventional loan and the twist you need to make it an investment loan.
Credit scores have a high impact in any conventional loan, but when you’re looking at investing, the lender is going to look at whether you have the financial ability to maintain an investment property, and your long term stability from past responsibilities. Before you start, take a look at your credit score and make sure it’s above 740. This may be the place you need to start to get the best loan on your first investment property. This is a great way to get a better interest rate on your investment loan. The better the credit score, the better the interest rate.
Finding a property with a great loan-to-value ratio is essential to saving money on your loan. It pays in the long run to have a property that is investment worthy.
Since investing is all about making money, you should have an adequate amount to invest. Know up front the type of property you plan on investing in. If you invest in a single family home, you will be required to have at least 20% down. If you have more than the minimum amount, you can save money in the long run. The more down, the lower the end pay off, the lower the monthly mortgage amount.
Investment properties require at least a 20% down on single family homes and 25% on multi-family homes. Since this is a basic requirement you also save money by avoiding (PMI) private mortgage insurance.
The Integrity Plan
The experts at Integrity First Lending want you to succeed in your investment plan, saving you the most money. We start your investment with a long-term business plan. Showing you how to make sure you have a back-up plan in case of an empty property, renovations that get the best return, and getting the best possible loan available. If you’re looking for a great property that can be occupied by you the borrower and have a rental attachment, we help you verify the rules and regulations for your house.