Investment Real Estate Loan

Real Estate Use:

Owner-Occupied Purpose vs Rental Income Purpose

When obtaining a mortgage for real estate in the United States, the loan conditions and processes can vary depending on the intended use of the property. The loan conditions and requirements can differ for the same property depending on whether it is for personal occupancy or for rental income. Similarly, for commercial real estate, the loan programs and necessary conditions can vary depending on whether the property is for your business use or for rental purposes.

 

Real estate loans are typically long-term loans, so the difference in interest rates is significant. Depending on your plans, you can choose between fixed or variable rates and repayment periods.

 

We provide assistance in obtaining the best loan conditions in the current market for your individual situation, leveraging our network and partnerships with over 100 real estate loan programs across the United States, rather than just one mortgage program.

Types of Investment Property Loans:

Investment Residential Real Estate:

Single Family House

Condo

Multi Family House(2-4 units)

  • Purpose: Renting out, not for personal residence
  • Down Payment: Purchase 25% or more
  • Refinance: 15% or more, 85% cash-out
  • Fixed, Variable Interest Rate
  • Interest Only Payment option available
  • Repayment Period: Typically 30 years
  • Personal Credit Score 660 or above
  • Processing Time: 1-3 months

Commercial Real Estate:

Office Building
Warehouse
commercial retail
Mixed Use
Apartment (more than 4 units)

  • Down Payment: Purchase 35% or more
  • Refinance: 30% or more, 70% cash-out
  • Variable, Fixed Interest Rate
  • Repayment Period: 5 years, 25 years, 30 years
  • Personal Credit Score: 660 or above
  • Processing Time: 2-4 months

* Fixed Interest Rate vs. Variable Interest Rate :

  • Fixed Interest Rate: A fixed interest rate refers to when the interest rate on a loan or deposit remains constant throughout the term of the contract. This means that the amount of interest paid remains constant, providing high predictability and low volatility. Since the interest payment remains the same when repaying a loan, the risk of unexpected interest rate increases is reduced.

 

  • Variable Interest Rate: A variable interest rate refers to when the interest rate on a loan or deposit fluctuates according to market conditions. It can rise or fall depending on market interest rates or other factors. While a variable interest rate can lead to unexpected costs as the interest payment can change, it can also be beneficial if market interest rates decrease.

* What is Cash Out?

Cash-out in a mortgage refers to obtaining additional funds by using your already owned property as collateral. This can happen when the value of the property has increased or when you have paid off a previous loan. Through cash-out, property owners can leverage the value of their real estate assets to obtain additional funds.