Home Loan Solutions for Real Estate Investors

Investing in real estate (specifically rental property) can be a great way to diversify your portfolio and build wealth over time. But finding the right form of financing to help you achieve your goals can sometimes be a challenge. In today’s post, we’ll review a few popular investment property loan options and show you where to go to learn more.

When considering the purchase of a home that you intend to use as rental property, it’s important to weigh the pros and cons of things like being a landlord, hiring a property management company and choosing whether you want to invest for the long run or you want to “fix and flip” for a more immediate profit. Once you’ve given substantial thought to the matter, the next big step is getting pre-approved for financing. Doing so can help you understand exactly how much money you’re able to borrow as well as put you in a more favorable position with sellers, since they are more likely to accept an offer from someone who has already taken the steps to secure a loan.

There are a number of investment property home loans available throughout the current lending marketplace, but not all loans are created equal. Some conventional mortgages can be used to finance rental property, but the guidelines for non-resident borrowers may be pretty strict. On the other hand, some lenders offer more flexible loan programs designed to make it easier for qualified borrowers to access financing for rental property. One such program is the Investor Cash Flow Home Loan from Luxury Mortgage.

Investor Cash Flow Mortgage

This program is designed specifically for real estate investors who are relying on financing to purchase a rental home. With the Investor Cash Flow Home Loan, borrowers can use cash flow on the subject property to qualify for the new loan. Tax returns and employment verification is not needed. Also, there is no limit to the number of financed properties the borrower currently has. This program can be a powerful financial tool to help investors build their  portfolio of income-generating properties. It can also be ideal for first-time investors who may not be able to purchase a property in cash.

Borrowers need not already have a renter in place in order to qualify for this loan. One of the things that makes this program so unique is that it allows the use of cash flow on the property once the home is rented.

To learn more about this program, click here.

Asset Qualifier Mortgage

This is another unique loan option that does not require documentation of consistent income. With the Asset Qualifier Home Loan, borrowers can use their financial assets to qualify instead of employment and income documentation. This could be ideal for borrowers with substantial assets, including retirement accounts, money market accounts, marketable securities and so forth. Credit history and credit score will also be considered; however, credit scores as low as 580 may be accepted.

Other benefits of this program include the following:

• Up to 80% loan-to-value ratio
• Loan amounts up to $4,000,000
• Competitive rates

Learn more about the Asset Qualifier mortgage here.

Bank Statement Qualifier Loan

Yet another innovative home financing solution, the Bank Statement Qualifier Mortgage may be a great option for borrowers who are self-employed or who lack consistent, documentable income.

Unlike most conventional mortgage products, this loan allows borrowers to use their bank statements to qualify instead of income and employment status. In this program, bank statements for deposit accounts are used to show that the borrower has sufficient means to repay the loan as agreed. Although employment history and income information is not necessary, credit history and credit scores will be used to determine qualification. Like the other programs mentioned above, the Bank Statement Qualifier Loan may be available to borrowers with credit scores as low as 580.

This loan may be ideal for real estate investors who have substantial reserves in their bank accounts, but may not have a traditional income structure.

To learn more about the qualifications and guidelines of this program, click here.

Learn More

Ready to explore these loans in more detail? Luxury Mortgage has been in the business of providing flexible and accessible investment property loans for many years. Give us a call to request more information and a free, no-obligation rate quote.