Investment Property Loans

Express Home Mortgage offers a wide variety of Investment Property Loans. Generally speaking, our investment property programs will allow for the purchase of a 1 to 4 family home, for the purpose of renting and in some instances re-selling the property.

Unlike financing for the home that you live in, investment property loans carry more risk for the lender. Consequently, the rules for obtaining a loan of this nature are far more conservative than financing for owner occupied properties. The additional risk is primarily due to the fact that you will not occupy the property. If you owned several properties, but could only make the mortgage payment on one of them, chances are pretty good that you would pay the mortgage on the property you live in over the ones that you are merely renting out.

The underwriting rules for investment property loans reflect this among other factors. Thus you should have a good (not necessarily perfect but good) credit history and a healthy degree of financial liquidity (six months worth of income in reserve at a minimum). The better the credit, the bigger the down payment and being able to prove your income and assets will get you the most competitive loan terms. However, there are still opportunities even if all of these criteria cannot be met.

No Down Payment Investment Property Financing

Some of our more unique programs will allow you to purchase a one to four family property with no money down. A 660 credit score opens the door for 100% investment property financing for a one to four unit property! A 620 score qualifies for 100% one to two family investor financing! Not only that, the seller can pay for the closing costs in amount up to 2% of the sales price, this further reduces your out of pocket expenses.

This brings to mind recent clients, who with the help of their highly competent realtor (he actually takes the time to fully understand the potential of these programs and how they work) obtained a several hundred dollar per month POSITIVE CASH FLOW PROPERTY. They accomplished this with only several thousand dollars out of pocket. They will recoup their initial out of pocket money before they own the property for a full year. Sure beats putting the money in a CD.

Express Home Mortgage has the mortgage programs you need to build a profitable real estate portfolio. Whether you have deep financial resources or are building toward that end, you owe it to yourself to contact us without delay.

Rehabilitation Loans

More aggressive real estate investors understand the opportunity in buying distressed properties for the purpose of repairing the property and reselling it. They strive to buy, rehabilitate and resell the property as quickly and as profitably as possible.

Due to the extremely high risk factors of this type of loan, they are rare on the market place (usually offered by private sources) and their terms appear down right outrageous when compared to conventional financing. But greater risk carries the potential for greater reward. This is true for both the lender and the borrower. The lender enjoys a higher return on the lent money and the borrower has the funds to acquire, rehabilitate and resell his property at a quick profit.

These programs are ideal for home improvement contractors and trades people that have the resources to rehabilitate the property quickly and economically. Others thinking of this type of investment should do so only after thoroughly understanding the risk factors involved. This type of real estate investing is not for everyone. However, those that have the resources to make rehabbing work, the rewards can be handsome to say the least.

Properties that qualify for this type of financing need to meet certain characteristics. Among them, the property needs to be non-owner occupied. The cost to purchase and renovate the property should be limited to 70% of it's rehabilitated resale value. The property should also qualify for one to four family financing when rehabilitation is complete.

The important thing to remember is that with this type of investment, you make your money when you BUY the property as opposed to when you sell it. By adhering to the 70% acquire/rehab formula, you are well on your way to doing so.