An investment property defined is a real estate property that is not occupied by the owner and has been purchased with the intent of earning return on the investment. This could be through either rent, the future resale of the property, or both.
An investment property can be a long-term commitment, like a rental home, or a short-term investment, as in the case of rehabilitation (buying a property to remodel or renovate and sell at a profit). No matter how you plan to use your investment property, the first step is choosing what types of property investment loans are right for you. That’s where Supreme Lending Houston comes in. Our dedicated team is here to help you understand your property investment loan options.
*Supreme Lending is not a licensed CPA or Tax consultant and therefore, cannot determine if your mortgage interest will be eligible as a tax deduction per IRS code. You are advised to contact a tax professional. This in no way implies you are guaranteed a tax credit.
Looking to get more cash flow by earning passive income from rent or successfully flipping a house? Whatever your dreams of investment properties may be, securing a loan may be the next phase. If you’re just starting out, you probably have a few questions. Check out more info on investment properties at Supreme Lending through these common questions.
Supreme Lending Houston offers a variety of loan programs. The one that’s right for you depends on your plans for the investment property. A Conventional loan may be best for a long-term investment. Condo financing options for rental properties are available, too. Depending on how long you plan to keep your investment property, lending needs can vary. Supreme Lending Houston offers fixed-rate investment property loans with flexible terms. Our experienced professionals can help you find the best one for you.
Investment loans for rental properties are for borrowers who are well-qualified. These loans have higher interest rates, so the requirements are a bit less flexible. As part of the loan process, your credit score, debt, and savings will be evaluated. When you apply, you’ll be required to show proof of income and a strong debt-to-income ratio. Be ready for a higher down payment than other loan program options. The lowest down payment you can expect is 15%, but you should plan to put down 20%.