If you are looking for a loan to finance your property investments; it’s wise to consider a wide range of qualifying factors that apply to you and the property you intend to purchase.
Listed below are a few tips and facts to consider when on the quest for financing for your intended investment properties.
Lenders to Look Out For
Mortgage insurance does not apply to investment properties. Hence; you need to find other traditional financing sources.
Both big and small lenders will come to your aid if you have a viable credit score and can put down 20% or more of the property value as down payment.
Use Your Landlord Status or Equity in Your Current Home
If you have experience of property management that exceeds two years; your income from a current rental property can help you get financing for property investments.
Likewise; adequate equity in your current home can make the financing process easier.
Qualifying and Non-Qualifying Properties
It is important to understand that specific investment properties qualify for financing while others do not.
B&Bs, timeshares, coops and certain turnkey properties may find their way on the non-qualifying list. Hence, it’s important to choose wisely before applying for financing.