Investing in rental properties can be a lucrative venture, offering a consistent source of income and potential long-term growth. However, before diving into the world of real estate investments, it’s essential to understand the financing options available. Working with the Treadstone Mortgage team in Kalamazoo, MI investors will be in a prime position to make informed decisions about financing the next rental property. Let’s explore the financing options available.
Mortgages for investment properties have different guidelines to follow. Essential it comes down to the difference between an owner occupied and non-owner occupied property. Non-owner occupied properties are viewed as being higher risk in the mortgage industry and there for have stricter requirements than a mortgage for a primary residence, but there are still plenty of options.
This program allows a investor to purchase a property and income qualify based solely on the rent generated on the property. Basically the program was designed for investors that whos debt to income ratios don’t line up based on the traditional calculations of looking at tax returns and paystubs. We simply look to see if the property is generating enough income from the rents received to cover the mortgage payment.
Although not your traditional investment property this can be a great way for someone to get started in the world of rental properties. The concept here is that someone would purchase a 2-4 unity property. Live in one unit and rent out the others. The cool thing about buying a investment property and living in one of the units is that the guidelines are much more forgiving.
Each of these different options have there advantages and disadvantages. It’s important to understand all of the options available not only for the next purchase but also future properties. When we consult with investors on the different options we talk about not only options for the upcoming property but we discuss what the future goals are and how to acquire multiple properties. Call us today to get started or jump online and start the application.
Buying a home is an exhilarating yet intricate process. For many, the dream of homeownership can seem daunting due to financial constraints. However, the U.S. Department of Housing and Urban Development (HUD) offers various financing options designed to assist individuals in purchasing HUD-owned homes, making the dream of owning a home more achievable. It is important to have a lender that is up to the challenge of navigating HUD home financing.
These properties are foreclosed homes. The previous owner had taken out an FHA mortgage and didn’t make the payments. Subsequently, these homes were foreclosed on. Often, these homes require repairs, and the utilities can’t be turned on. Frankly, HUD (the seller) doesn’t care – the properties are sold as-is, and HUD will not make any repairs to the home. That’s where things can get hairy if the lender is not equipped to navigate the process.Visit Jeremy's Blog