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Thursday, 30 October 2014 05:00

What to Look for in a Great Investment Property Loan

Income Property InvestmentBest Investment Property Loans - What to look for.

What should real estate investors be looking for in a great investment property loan and mortgage lender

Below are 6 criteria that we feel are important to consider when applying for an investment loan.

TOP 6 Investment Property Loan Considerations

1. Non-Recourse Loans

You want to make sure the loan is non recourse. Non-recourse loans are one type of investment property loan where the lending institution cannot come after the borrower for any reason if the loan defaults.


This type of loan is usually only given to very qualified borrowers with great credit scores and a large amount of equity in the property. This means that if you default on the loan, the lender can only go after the property itself and not your personal assets.


While he hasn’t always followed his own advice Donald Trump has said for decades that selecting non-recourse loans is the smart way to go to reduce liability, and separate personal from business and investment assets and debt leverage. 

2. Longer Amortization Schedules

While some investors may desire to retire debt leverage early, there are clear advantages in reduced risk, and maximizing cash flow by obtaining an investment property loan with a longer term amortization payment schedule. Assuming all else being equal, the higher periodic payments required on shorter-term loans will limit an investor's ability to buy additional properties, as well as reduce monthly cash flow. Check out our 30 Year Investment Loan Program

3. Transparency in Investment Property Loan Rates & Terms

While each transaction, property, and scenario is completely unique, the more transparent a mortgage lender is upfront the better the odds you’ll be given a great deal when it comes time to close.

Unfortunately, the reality is that not all lenders are created equal. Some will charge hidden fees, while others may not provide you with the best option for you but the option best for them.

This lack of transparency makes it very difficult for borrowers to accurately compare their options. The best way to combat this issue is by asking your potential lender lots of questions and reading the fine print very carefully. It’s important to ask about these charges upfront so there are no surprises later on. At Rental Home Financing, we are completely transparent because we know when you profit, you will grow your portfolio with us.

4. Indicative Transactions

Has this mortgage lender actually funded any investment property loans like this before? Some entities sadly make plenty on upfront application fees they never need to approve loans. Others just prefer a certain niche type or loan, in a certain geographic area. Ask, but also look for indicative transactions which may indicate this is a good fit. Call us today for a free consultation. 888-375-7977

5. An Efficient Investment Mortgage Lender

Look for an efficient lender, who is tech savvy, and can pass on savings to borrowers, and work fast. We have some of the fastest investment loans available. We can get you financed with the credit of the income of the property instead of using your employment verification, W2, etc... These are called DSCR loans with no ratio tied to your personal credit account.

6. Reasonable LTVs

Look for a mortgage lender that offers aggressive enough loan-to-values without going so far to be unsustainable. This will indicate a lender who is serious about serving investors, while ensuring they and their clients will be around for a long time. We provide LTVs 75% of as is value!


Rental Home Financing Investment Loans



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Rental Home Financing
9465 Counselors Way
Suite #200,
Indianapolis, IN 46240


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About Rental Home Financing:

Rental Home Financing, as the best mortgage lenders we originate rental home loan products and cash out refinance investment property loans as the best investment property refinance lenders. Commercial blanket loans are available with a commercial purpose to suit your needs.

Also, as DSCR loan specialists, we are currently authorized to make such loans in most all areas of the United States. Specific circumstances will determine whether we have the ability approve/close portfolio rental home loans in your state(s). When you are ready to get a mortgage for rental property, we are ready to serve you.

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