Pricing on homes is on the increase and interest rates remain low, does that mean we should buy, sell, and or hold on to new investments? The quick answer is YES, be smart and you can do well with your rental home loans.Rental Home Financing Investment Loans
Down payment – Go Big!
An average of at least 20% down is usually required in traditional financing to acquire business loans for rental property. However, to improve cash flow in real estate investing, a higher down payment for rental home loans may qualify you for better interest rates.
Borrow to improve credit
Business loans for rental property have many factors to determine your rates for rental home loans. You can improve your cash flow real estate investing on rental home loans by working on your credit score. Always check your credit score before trying to get business loans for rental property. It wil be the largest factor in setting the parameters for your rental home loans.
Credit scores around 700 and below can start to be costly to maintain the same interest rate on your rental home loans. Rates can increase in range from one-quarter of a point to 2 points to keep the same rate so it makes sense to start with a higher initial credit score. Either that or pay higher interest on business loans for rental property.
Establish reserves – show financial strength
Reserves in your bank accounts (at least six months) to pay for expenses, (personal and investment-related) is a big plus to lenders. It shows strength to lenders giving them the confidence that your endeavors will be successful.
Lenders want reserves for each property, to lenders, a large reserve is about as good as having 100% occupancy for your rental investment property.
Undercut the banks
Banks won't fund your rental real estate investments? You want an investment loan, but not the high cost of hard money. Banks are primarily interested in your personal credit and personal tax returns. We don’t really care about personal tax returns, just the property cash flow. Rental Home Financing, a direct non-bank commercial real estate lender offers competitive financing from $300k to $40MM. We offer blanket loans for investors looking to bundle groups of SFR (1-4 unit), Condos, Townhomes, and Multifamily Apartments.
We are offering permanent financing for investors with at least 5 leases in most areas of the country with our innovative new programs geared toward the entrepreneur.
Easy Approval Pre-Application - CLICK HERE