Blanket loans can be a crucial investment tool for property investors but finding blanket mortgage lenders can be challenging. They aren’t as proliferate as conventional mortgages and they might have more stringent qualifications.
While it can be tough to find blanket mortgage lenders, there are property investment strategies you can take to make the process less time-consuming. Review this comprehensive guide to blanket mortgage lenders before you start your research.
Investment property financing is a hot topic, but it can be difficult to determine the right financial vehicle for your property investment strategies. There are a variety of rental property loans that have different terms and features.
Choosing the right vacation rental property loans is critical to the success of your investment portfolio. They are, in some cases, the only way property investors can enter the market. You need to choose them carefully, though. Review this guide to determine what type of rental property loans you need.
Investing in property requires a significant amount of capital — or easy access to credit — but sometimes you might need multiple loans to cover more robust properties. Blanket mortgages are one tool you can use to finance a property that has a higher value than one loan might cover.
Blanket mortgages allow investors to purchase properties that might otherwise be unattainable, but they’re not for everyone. Before you decide to take this path, review this blog to find out if blanket loans are the right decision for your situation.
It’s easy to start an LLC. Pick a name, choose a registered agent, and file articles of incorporation with your state. This step is always mentioned as a way to protect your investments. But an LLC is more than that.
Businesses are known for generating profits in an efficient manner. You don’t get to the size of a company like Walmart without a lean, mean operating machine. In fact, Walmart is a business you should be emulating with your own investment. Walmart is more than a retail giant - it’s a master at blanket loans.
The internet makes it easier than ever to find lenders, check cashing, and other financial services. And we’re no longer stuck using the same handful of lenders our parents did. Today’s financial market is filled with reputable blanket loan lenders and other financial institutions that understand the challenges of a changing market.
You can’t afford to wait five or ten years to get started with a portfolio of investment properties. Research shows rents are rising in major cities like Phoenix, AZ and Las Vegas, NV. Millennial homeownership in the gig economy is nearly 10 percentage points lower than in previous generations.
You weighed the pros and cons of blanket loans carefully. It’s the right option for you, but you’re not sure who you can trust in the industry. Who can blame you?
Traditional mortgage lenders aren’t equipped to handle some of the more creative and advanced investment strategies. Your loan servicer is an expert in first-lien mortgages for single-family dwellings. The vast majority of loans she’s closing are government-backed FHA and VA loans.
Outliers she deals with are 2nd mortgages, reverse mortgages, and home equity lines of credit (HELOC). That’s about the extent of your current loan servicer’s knowledge, and beyond that, you’re stuck dealing with a commercial real estate agent.
We all have dreams of either a side hustle or retirement renting to others. It’s actually a great idea, so long as you understand what you’re getting into. In fact, 91% of cities in the U.S. are seeing rising rents, so there’s no better time than now to get started.
But securing investment property financing can be daunting. It’s actually a great market, but traditional lenders and investment advisors aren’t always well-versed on these types of purchases.
You may not want to be pigeonholed into the one- to four-unit loans traditional mortgage lenders can provide. This is why companies exist to make it easier than ever to explore and understand the wide world of investment properties, whether you’re renting a room in your home or buying an apartment building.
This new offering is designed for the active real estate investor seeking regular returns plus long-term appreciation for "acquire and hold portfolios". Another innovative lending program for investors that will not constrain your regular return objectives because our No DSCR Ratio program is strictly based on the value of the property, not the revenue flow of the rental unit:
|Offering Type:||Acquire, Rate Term Reborrow, Take-Profit & Reborrow|
|Realty Type:||Single property, First Lien Only|
|Investment Amount:||100K - 2M|
|Program Terms:||5/1 – 7/1 – 30/30 – No Balloon|
|Rate Range:||6.5% and up|
|Amortization:||30 year – Full Term Interest Only|
|LTV:||UP to 75% of value with 700 credit|
|Property Based DTI:||NO|
|Geography:||National: Most major MSA’s and secondary markets|
|Property Type:||SFR, 2-4 units, condos (FNMA warrantable), townhomes|
|Valuation Type:||1004/1007 URAR Standard with CDA Reconciliation|
|Borrower FICO:||640 Minimum|
|Seasoning:||6 Months on title for value|
|Documentation:||Streamlined – NO Tax Returns|
|Inventory:||Minimum of 4 months PITIA|
|Prepayment Penalty:||Declining or 80% of 6 months Interest Payments|
|Eligible Borrowers:||US Citizens/Permanent Resident Aliens/Foreign Nationals|
|Ineligible Borrowers:||Owner Occupied Homes|
New Rental Home Financing programs offer real estate investors incredible access to attractive blanket mortgage financing for growing and optimizing performance of their portfolios. There can be many advantages to these new investor property loan programs, but some of the terminology and features of these ‘Buy to Rent’ mortgages may be new to many.
So what do they mean and how do they help?
What are blanket mortgages? When should they be used for financing income investment properties? What features and terms should real estate investors be demanding when shopping for a blanket mortgage loan?
Blanket Mortgages 101:
Blanket mortgages may be a new concept for many residential real estate investors. However, they have been used for decades by builders and developers, and commercial property investors.
Blanket mortgages are used for funding more than one piece of property, in one loan.
Imagine if a builder or developer needed to arrange individual lot and home financing for every property in a new subdivision, or condominium building. It would be a paperwork nightmare, not to mention slow, inefficient, and extremely expensive to the point of being cost prohibitive.