Rental home investors with mortgage free income properties are flocking to take advantage of a new loan program which enables them to access pent up equity.
So why are sophisticated buy and hold real estate investors rushing to refinance under this new mortgage program, and why do all those with free and clear properties need to act now?
New residential blanket mortgage loans from Rental Home Financing offer landlords with at least 5 income properties to refinance and receive cash out, at incredibly low interest rates. Many investors have acquired rental homes for cash recently, and while it can feel cozy to some to be mortgage free, there are some very vital reasons for acting on this opportunity now.
There is really only one way for interest rates to go. That’s up. For long term buy and hold investors it doesn’t matter if that takes 2 months, or 2 years. Just a couple point hike (and it will go much higher than that), will make hundreds of thousands of dollars difference in borrowing costs over the time holding even a small portfolio, or single property. That means those that may need to refinance within the next decade or two will be far better off doing it now.
Liquidity is critical to investors. It provides a cushion for unexpected damage and replacement needs, as well as personal needs such as major health expenses. When crises happen it is normally difficult, if not impossible to refinance. That means at least lining up an active credit line now can be invaluable.
Being able to recoup capital means being able to take advantage of current opportunities, and lock in great ongoing passive income and wealth building. Those who delay will suffer reduced returns due to a variety of market factors.
Access to more expansion capital now also means the benefits of greater diversity in a portfolio. This helps to keep income consistent, and protects investors from everything from local job market shifts to natural disasters.
All of the above combine to reduce risk for rental property investors that sensibly leverage their properties now. Additionally, it can work to preserve credit by keeping lines clear and ensure working capital in a pinch.
Smart and modest leverage is a great tool. Those that hide behind the mirage of comfort that a mortgage free property are unfortunately deluding themselves. There is really no such thing as ‘free and clear’. There will always be property taxes, insurance or repairs. So why deny yourself of the best benefits of leverage?
Rental Home Financing now provides a stated program for residential rental properties that does not require borrower tax returns to conform to a global underwrite. We like to see a minimum FICO score of 620 and will base the underwriting off of the asset(s). Typical guidelines are as follows:
Financing for 1 to 4 units investment/rental units free standing or attached duplex, triplex and fourplex properties. “blanket mortgage” funding available for multifamily apartment properties.
Rental Home Financing offers commercial stated income mortgage loans in most locations including:
|Central States||Northern States||Pacific States||Southern States||Western States|
|Minnesota||New Hampshire||Washington||Mississippi||New Mexico|
|Missouri||New Jersey||North Carolina||North Dakota|
|Ohio||New York||South Carolina||Oklahoma|
Call us today – 1-888-375-7977 and speak with one of our qualified representatives.