Investment Property Mortgage Loans
Investment Property Loans
Home Financing Options for Investment and Rental Properties.
Conventional Mortgages · Jumbo Loans · Home Loans for 1-4 Units.
Buying an investment property can prove to be a profitable venture if you are make the right decisions. Right now is a great time to buy since home prices are still undervalued due to the recession. Therefore, one may reasonably expect to see their investment property increase in value over the next several years.
At USA Home Financing, we provide excellent financing solutions for home buyers looking to invest into residential real estate. This includes competitive interest rates and considerably high LTV ratios (loan-to-value). We provide qualified applicants with up to 85% financing on investment property purchases.
The process of qualifying and closing an investment properties differs from owner occupied homes. The two major factors taken into consideration when reviewing your application is what your new debt-to-income ratios will be, as well as your credit history. In order to provide you with the most accurate information regarding what you will qualify for, we encourage you to call a loan specialist at 1-800-731-3560 or submit an online mortgage application form.
Some of the most common questions we receive about investment property loans are:
Does rental income count towards debt-to-income ratios?
Yes, rental income will help lower your DTI ratios, as long as the underwriter approves. If the rental income seems inflated it will be reduced to what is deemed accurate for the rental market of the property.
Can the money for the down payment be borrowed?
No, you must be able to pay the entire down payment from your own savings or assets. It can not be borrowed, gifted, or received from any down payment assistance of any sort.
What loan repayment schedules are available?
You can finance your purchase with a 30 year or 15 year loan. Both are available with fixed or adjustable rates. The fixed rate offers the security of a fixed payment that doesn’t fluctuate. Adjustable rates typically provide a lower rate, but not the comfort of a fixed mortgage.
Do you offer jumbo loans for investment properties?
Yes, and a large share of the investment property loans that we close exceed the conforming loan limits, and are jumbo mortgages. We provide jumbo financing for investment properties all the way up to $2,000,000 in the following states: Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Kansas, Louisiana, Iowa, Illinois, Indiana, Maryland, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming.
Can I finance a multi-unit investment property?
Yes, financing is available for multifamily homes, but only for 2-4 units. You may use a conventional loan (conforming loan limits) or jumbo loan for a duplex, triplex, or fourplex.
Are investment property loans available through the FHA?
The FHA does not allow any non-owner occupied homes. However, there is one scenario that is permissible, and that is on 2-4 unit homes, as long as you occupy one of the units.
Does the VA offer any programs for veterans to purchase investment properties?
The VA also restricts home loans to a primary residence. However, VA loans are available for multi-family homes just as FHA loans are. The same rule applies to VA loans and FHA loans alike, and that is that one of the units must be occupied by the borrower.