13 Jul Investment Property Loan Qualifications
Know Investment Property Loan Qualifications when you want to invest in Real Estate.
The lender will ensure that both the property and the borrower meet Investment property loan qualifications when qualifying for a rental property loan.
Select the Appropriate Down Payment Amount
Budget for a 20% down payment. If you have excellent credit, you may simply need 15%. If your credit is less than great, you may require as much as 35%.
Make Certain that you are Financially Prepared
Plan on having 6-12 months of liquid cash reserves in addition to a larger down payment. This will assist you in the event of a downturn and ensure that you do not lose the home owing to late payments and foreclosure.
Increase your Credit Score – Loan Qualifications
Lenders modify the pricing, terms, and conditions of rental property loans more than owner-occupier loans. Before applying, do everything you can to improve your credit score. Also, once you’ve applied, preserve your credit score to ensure that your loan closes smoothly.
Show Proof of Eligible Income for Investment
Prepare your documentation if you’re looking for an agency or bank loan. Pay stubs and tax returns with all of your tax return schedules are required. Prepare to answer queries concerning tax returns from a year or two ago. Also, ensure that you have enough personal income, including any net operational revenue from your rental properties, to cover the monthly rental payment.
Ascertain that the Property is Rentable
Because construction finance from rental loans (in the form of a hard money loan), most lenders will look to see if the property need any major repairs.
For more information on Investment Property Loan Qualifications, contact Kenady Fundings team.