Investing in a property is a great way to make passive income or provide a vacation home for your family.
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 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 are already in the property management game, you know that rental income can help you qualify, based upon the current rental market value.
If you are looking to buy a large home in a moderately-priced community or a moderate-size home in an expensive area of the country, a Jumbo Loan may be needed to finance the purchase. They are typically reserved for buyers with good credit, steady income, and a good amount of cash reserves.
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 you are interest to learn more about investment properties or have any questions, please contact Right Key Mortgage to schedule a free consultation. No matter if you are a first-time homebuyer or an investor, we are here to help you conquer your dream home in NH, MA, RI, CT, GA, and FL!
A Jumbo Loan is a loan on a property that is over a certain amount such as $550,000. The size for what is considered a Jumbo Loan varies state to state. The lending for Jumbo Loans tend to have stricter qualification requirements.
Much like the name infers, an Interest-Only Mortgage allows the borrower to pay only the interest fees for a given period of time before paying principal and interest. These type of loans may be variable rate.