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If you want to venture into real estate investing but do not have enough money on hand, investment property loans might assist you in financing a property to invest in. Rental property loans are offered to purchase investment properties, such as second homes, condos, multi-unit residential properties, or vacation properties, to generate a return on the investment through rental income or property resale. Bluestar Mortgage provides a diversity of rental property loans to meet your needs. One option is to utilize the home equity of your house to fund the additional property you want to purchase for investment.
Single Family
Single family properties encompass one to four-unit residential dwellings, which include condominiums, planned unit developments (PUDs), townhomes, duplexes, triplexes, and quadplexes. Bluestar Mortgage is ready to assist real estate investors and entities seeking to purchase, refinance, fix and flip, or buy to rent, with loan amounts starting from $75,000.
Multi Family
Multi-family properties are defined as housing that consists of five or more residential units within one or more buildings in a community or complex. Bluestar Mortgage offers financing solutions for real estate investors interested in purchasing or refinancing multi-family properties, with loan amounts available from $250,000 and up.
DSCR Loans (Rental Property Loans)
This is the most common type of loan used by investors for rental properties. The loan approval is based solely on the rental income generated by the subject property; therefore, we do not review personal income. There is no need to submit tax returns, W-2s, or pay stubs. Other properties owned by the borrower are also not considered in underwriting, so you do not need to submit all property documents. DSCR loans can also be closed in LLCs or Corporations.
Conventional Bank Loan
A conventional loan is a “full documentation” loan available to investors. This loan is the government version of a mortgage and conforms to the guidelines set by Fannie Mae and Freddie Mac. But since this will be an investment property loan, the eligibility standards will be much more rigorous even though the procedures are almost the same as your primary home loan application. The advantage of this loan is that it offers the lowest rate.
General Requirements:
Hard Money Loan
Hard money loans are offered by companies that specialize in real estate investment and are often simpler and quicker to obtain than bank loans. Usually, the basis of loan approval is more dependent on the worth of the investment property than on the investor’s revenue or credit score. This type of investment property loan is a short-term loan designed for investors who want to buy and flip a property for profit, as opposed to generating continuous income from rentals.
This type of loan has a relatively high interest rate compared to what a traditional lender might offer.
General Requirements:
If you decide to secure a hard money loan, the lender’s possible consideration is the sum of equity or the initial payment you will have in the home, and the amount of money you own in cash reserves. The lender might also consider the extent of your knowledge in real estate and the proposal you might have for generating revenue on the property.
Private Money Loan
Unlike a hard money loan offered by companies, a private money loan is provided by a private individual ready to invest in an investor who is worthy of a profit. You can ask your close family ties and friends in the same real property investment loop to search for a private lender.
Typically, this kind of loan is suited for investors who are not eligible for a bank loan. The eligibility criteria for this loan are usually adjustable, and the interest rate is typically favorable to the borrower.
General Requirements:
Among the financing options here, the private money loan has the most complex requirements for application. The connection you have with the person who provides you with the money will matter most. However, they may still require you to show proof of financial documentation to determine your ability to pay off the loan as agreed upon.
If you are interested in a Rental Property Loan, call us at 321-400-5545 to speak with a Rental Property loan expert who can assist you in determining if a Rental Property Loan is the right option for you.
We guarantee that we will be able to close on or before your set closing date or we will waive all of our lender fees.
