Availability of Rental Home Financing loan programs continues to give real estate investors an edge in the market. A tight mortgage market has been blamed for holding the US property market back from its full potential for years. However, while that hasn’t changed too much for regular home buyers, capital markets appear to continue to be fueling rental home investment activity.

Tight Mortgage Lending Standards Continue In 2022

The latest reports show that despite increased confidence and sales activity in the housing market, mortgage lending remains tight for consumers. The National Association of Realtors’ Economists Outlook and mortgage originator survey shows both concerns over-servicing issues and regulatory risk as significant factors in restricting new lending activity.

The Urban Institute and Market Watch report that lenders have still been turning down over 1 million loan applications per year, from borrowers who would have been approved in 2001. In fact, Market Watch says more people aren’t even bothering to apply for credit.

Is a blanket mortgage loan just what you need to optimize your rental property portfolio? There are thousands of real estate investors out there with multiple rental properties, who are not yielding the best possible returns. Blanket mortgages could be one of the simplest and most effective options for turning this around.

What is a Blanket Mortgage Loan?

A blanket mortgage loan is a single loan that can be collateralized by multiple properties. For example; instead of applying for and juggling 10 individual loans on 10 single-family homes or apartment buildings, investors can use a single blanket loan to borrow against all of them. It is one set of paperwork, just one loan to service each month, or to consider refinancing or retiring in the future.

There can be many advantages of these loans for optimizing income property portfolios.

Rental property investment activity is expected to soar in 2017 fueled by new confidence and a brighter economic outlook. Home sales hit a new record in January 2017 according to NAR and the US Census Bureau. Builders are expected to continue to expand, and investors are eagerly searching for deals. It all bodes well for the market for the foreseeable future. At least for those with the capital and financial sources to seize on current opportunities.

The New Economy

We are clearly in a new economic mode, with multiple fundamentals signaling greater times ahead. In February 2017, private US employers added almost 300,000 jobs, beating expectations by close to 30%. Tens of thousands of addition jobs are to be added as manufacturing firms return to the US, or expand their American footprints. Fox Business reports that wages have finally been rising. Up 3% already, higher pay is likely to be compounded as employers compete for workers.

At the same time stock indices have been notching up new record highs, and the Snap IPO has pushed tech to what some call almost ‘too big to fail’. So, while the economy looks great, forward thinking investors are looking to capitalize on the yields and equity gains that can be locked into in rental property investments.

Stated income loans are making a big comeback for commercial real estate financing After years of tight credit markets commercial real estate funding is flourishing again. Many have been sitting on the sidelines waiting for more lenient loan programs to return. Now they are here!

Stated Income Loans

Stated income loans are a vital part of the real estate industry, and the economy. Now that they are returning the effects may not only brighten the finances of individual investors, but the wider market as well.

Stated income loans allow borrowers to qualify for real estate financing, without having to jump through all of the paperwork hoops, hassles, and time drain of full documentation underwriting. This not only provides investors with speed and efficiency advantages but can be an absolute necessity. Many experienced and savvy property investors have sat on the sidelines because they don’t want to deal with the inefficient complexities and quirks of income documentation.

Others, who are self-employed, are full-time investors, those who have complicated finances or advanced tax sheltering vehicles in place simply can’t verify income thoroughly enough. That ironically even spread to former Fed chairman Ben Bernanke, when even he couldn’t qualify to refinance his own home.

As stated income and other expanded qualification loans roll out and spread we should expect many more seasoned investors return to the market, while firms expand their acquisitions.

Each year is a new journey, it’s time to choose your paths and where you’re heading. It’s time to choose who you’re going with, how you’re going and when you’re going, we want to be there with you to help in that success.

Choose to experience beautiful twilights and incredible trips, and to smile spontaneously. Choose to cultivate friendships, and spend time among good friends.  Choose to love, constantly and abundantly, and may this never be too little. Because every good choice we make deserves to happen someday.

As this year draws to a close, we at Rental Home Financing would like to wish you a Happy New Year and thank you for your patronage over the years. Our company would not have been this successful had it not been for the support that we have been provided with by our most prime assets – our customers.

We anticipate that the coming year will bring with it more in terms of mutual success. Rental Home Financing is committed to providing you with exceptional services and we will do our best to keep our service standards high in the next fiscal year as well.