Boosting Your Income With An Investment Property Loan

Have you been thinking about buying a property with the intention of renting it out or selling it for a profit? An investment property loan, (also known as an investor loan), is a type of mortgage that can be used to purchase a property that produces income for the borrower. If you are interested in your loan options to help you buy an investment property in the areas of West Palm Beach, St. Pierce, or Tampa Bay, Florida, CTC Mortgage can help. Read on to learn more about increasing your income with an investment property loan.

Investment Property Loans: Basic Information

An investment property loan is intended to help a home buyer finance an investment property, and then either rent out the home or fix and flip the property to help produce additional income. The types of properties that are purchased with an investment property loan are generally single family homes, condominiums, or apartment complexes. Although the property is not supposed to be the borrower’s primary residence, there are certain circumstances in which the property owner can reside in the dwelling if it’s a multi-unit building. There are several different types of investment property loans available, including hard money loans, conventional loans, fix and flip loans, etc. You will want to work closely with your lender to determine the type of investor loan that best suits your situation. Investing in a property offers many benefits, including the opportunity for tax deductions and the opportunity to have an additional form of income.

How To Qualify For An Investment Property Loan

Because there is a chance that the investment may not be financially successful, an investor loan can be risky for a lender, causing them to have stricter eligibility requirements. To qualify for an investor loan, the typical requirements include:

• A down payment of at least 15 to 20 percent.
• A debt-to-income (DTI) ratio of 50% or less, meaning the total amount of money you earn that you pay towards debt needs to be lower than fifty percent to guarantee that you are able to afford monthly mortgage payments.
• A decent credit score of at least 720. It is important to note the higher your credit score is, the better mortgage rate you will be able to obtain.
• At least a six month reserve of savings in order to ensure that you can afford payments, property maintenance and repairs.
• Verification of consistent income with pay stubs and tax documentation.

Increase Your Income With An Investment Property Loan

If you are interested in purchasing a home with an investment property loan in and around West Palm Beach, St. Pierce, or Tampa Bay, Florida, contact CTC Mortgage today for a consultation.

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