Mortgages & Loans

Rental property investors have a little more of a challenge when looking for properties. Mortgage company underwriting guidelines, rates and terms are often less favorable for investment properties than for purchasing an owner occupied single family home.

Sometimes there are ways around this, like refinancing a primary home and pulling out equity… or getting a home equity loan and using it to purchase the rental. On occasion, seasoned investors with larger credit card lines may even purchase a property that they need to close on asap using their credit card line and quickly flip or finance the property to avoid high credit card interest rates. However, before you do any of these things it’s important to know what you are doing… you don’t want to make a mistake, especially as a new investor, and lose your primary home in the process!

Working with a good lender is very important. Shop around, talk to local banks and lenders. Rates and terms may differ significantly between local banks, local mortgage lenders and your online searching.