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Long-term financing on investment properties
Posted on 12/8/16 at 10:49 am
Posted on 12/8/16 at 10:49 am
How does one obtain 15 or 30 year financing on rental properties? Is this possible?
3
Posted on 12/8/16 at 11:10 am to Drive4show
Yes. You can get a HELOC to help pay for it or use for the down payment and then get another personal investment loan at a little bit higher of a rate. I have three investment loans at 4.5% where if I would have done a personal loan as a primary residence it would have likely been 3.5%. 4.5% is still a pretty good rate. I've done this for 3 rental properties in the last 1.5 years. You still have to qualify with the debt to income ratio and reserves though. Once you have 12 months of rental history and a lease that you can show collected rent/revenue, most banks will then take 75% of that number and apply it your income which in theory will allow you to do another since the debt and income from the rental would zero out or hopefully still show some as income. Your reserve would then have to be enough for two rentals though if you did another one.
This post was edited on 12/8/16 at 1:50 pm
Posted on 12/8/16 at 2:11 pm to Drive4show
Second property mortgages are the same as primary residence, they just have higher rates because there is great risk of default since you are not living there. You can get 5/1, 7/1, 10/1, or 15. 20, or 30 conventional.
Posted on 12/8/16 at 5:30 pm to baldona
Which banks
Posted on 12/8/16 at 5:35 pm to Drive4show
if you're worried about approval for any reason like income or credit, look for owner financing, the rates are higher but you wont have a problem getting in
Posted on 12/8/16 at 6:02 pm to Athanatos
quote:
Which banks
Is that a question for me? I'd look local but I know that Wells Fargo does them and you can do that all online/ over the phone.
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