Financing Investment Properties with Loans in Green Bay, Wisconsin
Investment properties can be a great opportunity to build your net worth and to increase your income. There are a variety of types of investment properties from commercial office buildings to warehouses to residential duplexes to single family homes. Some investors have a preferred property type while others like to diversify their real estate holdings. The vast majority of people looking to purchase an investment property will need to finance some or all of their purchase. Many people think that Executive Mortgage in Green Bay, Wisconsin only works with people financing their primary homes or vacation homes, but the truth is that our loan officers frequently work with real estate investors to finance their investment properties. Investment properties are properties held over a period of time with the aim to make money through property appreciation and/or annual income.
Loan Terms and Conditions for Investment Properties
Typically the lending rules are a little different for investment properties than they are for primary and secondary residences. Investment properties carry more risk for lenders so the interest rate is higher than the interest rates on primary residences. Investment properties often require a larger down payment than primary homes as well. It certain situations it may be possible to put 15% down on an investment property, however 25% or 30% down is more commonly required. A larger down payment will also lower the monthly payments which will increase your monthly income on the property. Many of the same factors that affect the terms of a mortgage on a primary residence affect the loan parameters for an investment property. These parameters include: credit score, debt to income ratio, appraised value of the property, assets, and cash on hand. In some situations your experience as a landlord may factor into the financing process. If you are considering a condo as an investment property the lender may have additional stipulations. Some investors also choose to owner occupy their investment property – for example an investor may purchase a duplex and live in one unit while renting the other unit out. This will also have an effect on lending.
Financing Your Next Investment Property
The bottom line is that every situation for an investment property is different. It's best to speak to one of the experienced loan officers at Executive Mortgage to see what loan might work best for your investment and what requirements there are for that loan. Even if you don't currently meet the requirement to get an investment loan discussing your situation with a loan officer can get you on track to meeting these requirements in the future.
Contact Executive Mortgage About Real Estate Investment Properties
If you want to explore how financing your next investment property could benefit you contact us here at Executive Mortgage at 920-490-8823. The loan officers at Executive Mortgage are experienced with a variety of loans and mortgages for investment properties and can find the best mortgage product for you and your situation.