Single Rental Loan
If you are buying your first single-family rental property, now’s a good time to get an investment loan. Single-family rental loans have enormous advantages for specific circumstances when compared to conventional mortgage loans. First, they are based on cash flow — not personal income. And they are designed for people who plan on buying investment property and renting it out for a long time, which can give you financial stability and confidence.
Single Rental Loans are especially attractive to…
- Have a cash cushion. The more cash you are able to put into the deal, the lower the investment loan interest rates.
- Have a better-than-average credit score. You’ll need much stronger credit than you would if you were seeking a home mortgage.
- Don’t want to provide proof of income. The lending decision is based on the value of the property.
Chances to break into the business
Investment property loans are available to both first-time and veteran landlords.
Small loans for new landlords
The property must be worth at least $100,000 in order to qualify.
Variable loan amounts
Depending on the value of the property, you’ll be able to borrow between $75,000 and $1.5 million.
Manageable cash-flow requirements
For properties worth more than $150,000, personal debt to income (PDTI) can’t exceed 85 percent. For properties worth less than $150,000, PDTI can’t exceed 70 percent.