Investing in a property is a great way to make passive income or provide a vacation home for your family. At 5280 Mortgage™, it’s our job to make your investment goals a reality by providing the right financing to get you started or cut costs from your bottom line.
An investment loan is for a single-family, townhome, condo, or multi-unit property that has been purchased with the intention of earning a return on the investment, either through rental income, future resale or both.
For those interested in buying an investment property, 5280 Mortgage™ offers loans to fit unique investor needs. As an option, you may be able to use your current home equity to finance buying an additional property. Give us a call to see what your options are or apply online.
Investing in a property or multiple properties can have its perks. While most people look at rental investments initially for the passive income, there’s also the appreciation to look forward to in the long-term. In addition to monthly cash flow, there are also many tax benefits such as depreciation and a lower tax-rate for long-term profits.*
While conventional loans are structured to make the loan experience simple for the borrower, investment loans require strong financial standing and healthy cash reserves.
For an investment loan, a down payment is a must. For a single-family home, though it can be as little as a 15% down payment is required, but on a 2 – 4 unit property, it is as low as 25% down. If you’re already in the property management game, you know that rental income can help you qualify, based upon the current rental market value.
Qualifying for an investment loan generally requires:
5280 Mortgage™ offers a number of different loans for investment properties, from fixed-rate loans to adjustable with a variety of term lengths. It is a good idea to first decide on a plan for your investment property. Do you want to renovate and sell quickly? Rent it for a passive income source? Something else?
What you do with the property will help determine what type of loan product may be suited to your needs. If your plan is to buy and rent the property, it may be best to choose a conventional mortgage.
If the intent is to use your property as a rental, you can calculate your expected income and then choose what term works best for you, from a 10-year to a 30-year. Just be sure that you can cover the payment if your property is vacant for a period of time. Talk to a loan officer to see what options are available for you.
As a top national lender, 5280 Mortgage™ has earned a reputation for focusing on your unique needs with superior customer service. Whether you’re a first-time investor or you manage several properties, choosing the right team and lender can greatly improve your loan experience. Our Loan Officers are equipped to help you each and every step of the way through the investment loan process.
Dedicated to helping you invest in a new property or refinance an existing property, we will continually work to help you find the right home loan for your unique needs. To learn more about our competitive rates on a wide range of investment products and see how 5280 Mortgage™ can help with your next property, please contact a Loan Officer today.