Rental Loans For Real Estate Investors

If you are a real estate investor and are looking to purchase rental property, you may be interested in exploring the options of a rental loan. Many financial institutions are reluctant to lend money for rental properties due to the strict requirements and regulations. Private lenders have more lenient lending guidelines and work directly with borrowers to ensure that their applications meet all requirements. This type of loan may be suitable for you if you have good credit and plan to rent the property out for a profit.Typical rental loans are 30 year, fully amortizing loans with rates ranging from 5.25% to 8%. They are designed for properties that contain one to four units. However, if you plan on purchasing a property with more than four units, you should look into a commercial residential loan or an apartment loan. You may also want to consider FHA multi-family financing, which may fit your needs better. This type of loan requires a minimum credit score of 620 to qualify for the best interest rates. Read on how to get a loan to flip a house here.

Another alternative to a traditional rental loan is a home equity line of credit. Home equity lines of credit work by using the waterfall method, and provide funds as a lump sum. Unlike a term loan, a rental loan can close in a few days. The benefits of this type of loan are numerous. They are a great way to finance your investment properties without the hassles associated with a traditional bank loan.The easiest way to acquire a rental property from this page is to buy your primary residence. You will have to live in the home for at least a year before you can convert it into a rental property. 

Once you have successfully rented out the home, you can then purchase a separate residence. This method also allows you to keep the lower interest rate on your primary residence. Additionally, this option can help you cash flow your property quicker.For those with more complicated finances and plans, you can consider applying for an FHA loan. These loans are offered to people with less than stellar credit, and allow you to buy up to four units. While credit score and down payment requirements are generally lower than those of conventional loans, you may have to live in one of the units in order to qualify. This type of loan is also available to spouses of military members. You may want to contact a mortgage broker or bank to find out more about these loan programs and how they can help you finance your rental property.

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