Home Loans For Investors is a post from: FHA,VA and Conventional Home Loans in all 50 States

Most articles on this blog are geared towards FHA loans, which are for people purchasing their primary residences .  But we also handle all other available residential financing such as conventional loans, Jumbo home loans for large loan sizes over the conforming limits, and investor home loans to purchase rental property.  In this blog post I will write a quick blurb as to what is available right now for investors.

Basically right now if you buy a rental property you will have to put 20% down.   The interest rates will be better with 25% down.  You will have to qualify with full income documentation, that means if you are a W-2 employee 2 years of w-2′s + last 30 days paystubs.  If you are self-employed that means your last 2 years tax returns.   One nice thing is if you buy rental property is you can use the estimated rent as income to help qualify even if the property is vacant.  When the appraiser appraises the property they will estimate the market rent.  That is what you can use as income to offset the new housing payment.  This means you can buy a lot of property without if affecting debt ratios because the rent will cover a lot of the rental house payment.  You can also buy up to 10 total financed properties. 

I don’t usually comment on the housing markets, but in many high quality areas of the U.S. that have come down in price significantly (California, Arizona, Nevada Florida especially), there are some tremendous buys.  You can buy a property in a premium market and it will “cash flow”.  Meaning the rental income will cover the total housing payment and all expenses.  In many places in California for example, it has probably been nearly a decade since an investor could achieve this!

So if you have any questions or would like to get pre-approved to buy rental property, give us a call or email.

Warm Regards,

Rob Chomentowski

Sr. Loan Officer

rob@affinity-financial.com

858-922-7899

Related posts:

1. Using FHA Home Loans to Buy 2-4 Unit Properties