When you start looking for your next investment property, you will undoubtedly find that locating an investment property loan is not as effortless as it once was. There are a lot of companies funding loans for investment properties and you can definitely get approved, but you will need to take note of the current expectations of lenders.
The days of no down payment or low cash down options are a thing of the past. Youâ€™ll be expected to put 20%-30% down and you will need to have good credit. If your credit is decent, but not fantastic, then expect to put even more cash down. Is it still possible to obtain an investment property loan without a down payment? Actually, yes, but these loans are typically obtained from a commercial lender that will accept cross collateral (a lien on an additional property that you already own) instead of a down payment.
Your best bet will be to look for a mortgage broker that specializes in investment property loans in your area. They will typically know of all the lenders that offer financing options that will meet your requirements, and will be able to assemble the best deal for your situation.
In addition to knowing the best financing options, they may also have other clients that both purchase investment property and fund private investment property loans themselves. Savvy lenders will often have some private lenders in their pocket to bring in when conventional loan options are not available.
Private lenders often have funds on deposit in a self directed IRA account specifically for backing private notes for individual investors that cannot get a conventional investment property loan. Depending on the interest rate they request, this could be a win-win scenario for everyone involved, so stay open-minded.
Be sure to ask around, search the web, and locate the best options for you. Donâ€™t get frustrated if you are unable to find the perfect solution right away. The best option for you may exist in a single relationship that is right under your nose. Do your research, understand your boundaries, and take it at your own pace.
United Rentals Plans Debt Amid Rising Volume: New Issue Alert
United Rentals Inc. , the equipment- leasing company with more than 550 locations, is marketing debt as corporate bond sales jump 87 percent from the similar period last week amid better-than-expected third-quarter earnings.
Read more on Bloomberg
U.S. Stocks Advance on Earnings Optimism
Indexes rallied on higher-than-estimated results at Boeing and Yahoo and speculation the Fed will inject more money into the economy
Read more on BusinessWeek
Banks face two-front war on bad mortgages, flawed foreclosures
On one front, U.S. homeowners are challenging the banks’ right to foreclose because of sloppy paperwork. On the other, investors who bought mortgage bonds are demanding refunds that could approach $200 billion because the underlying loans are flawed.
Read more on Minnesota Public Radio
Gaithersburg, Maryland Hard Money Lender We are a Gaithersburg, Maryland hard money lender. This is a loan we did in May 2010. For more information visit www.hardmoneybankers.com
Just wondering if any of you may know about this . . . I am interested in buying an apartment building. In order to be approved for the loan, do they base the decision off of the cash flow of the apartments, or my salary? Or both?
Also, if the cash flow is excellent, is it possible to get a less than 20% down payment? Thanks!
looking for a hard money lender that will lend money at low rate
Canada Building Permits Jump 15% in September, Recouping August’s Decline
Canadian building permits jumped 15.3 percent in September, rebounding from a decline in August, led by single-family houses and offices.
Read more on Bloomberg
Some home truths about banks
DO voters really think it’s a good idea for the Federal Government to regulate the commercial decisions made by private companies?
Read more on The Courier Mail
Bank of America: Getting More Comfortable with Putback Risk?
Bank of America chief Brian Moynihan’s legal background (Notre Dame Law School) is coming in handy in the top post in charge of the largest U.S. bank by assets.
Read more on Wall Street Journal Blogs