Why You Need A Mortgage Lender For Your Investment Property

Are you looking to expand your investment property portfolio? Hoping to generate monthly cash flow and grow your net worth?

Buying and holding rental properties is one of the best ways to invest your money. And with so many financing options available, anybody can get started in real estate.

There is a multitude of nontraditional financing options out there. But the best place to start is with a mortgage lender. Getting a loan for investment properties from a mortgage lender is a great way to get your first few properties.

There are many reasons to work with mortgage lenders for investment properties. Are you an active or aspiring investor looking to capitalize on investment properties in the Dallas, TX area? Keep reading to find out how a mortgage lender can help you.

Most Common Loan for Investment Properties

There are many different investment property loans and dozens of creative strategies used by savvy investors to finance rental properties. 

Many look to private investors for funding. High-income earners are often able to pay for rental properties outright. Still, other investors will search for months hoping to find a seller-financed home.

Many of these options are a great tool for expanding an existing portfolio. But there’s one rental property financing method that stands out as the most popular; the conventional mortgage.

Yes, you can get a conventional loan for investment property. It functions essentially the same as a mortgage for your primary residence. The only differences are the terms and requirements.

Mortgage terms for a primary residence are flexible these days, allowing for lower down payments and interest rates. But for investment property mortgages, requirements are a bit different.

You’ll be required to put down between 20 and 30 percent to receive a mortgage. Interest rates will also be a bit higher on rental properties versus a home that you occupy since there’s greater risk involved.

But, conventional mortgages are easy to qualify for. They are fast and will allow you to start acquiring deals right away, so long as you can make the down payment.

A conventional mortgage isn’t the only reason you should work with a mortgage lender to finance your next property. Here are some of the other benefits of working with investment property lenders.

Benefits of Working With Mortgage Lenders for Investment Properties

If you have a solid financial foundation, a conventional mortgage is one of the easiest ways to finance a new investment property. But mortgage lenders that specialize in serving investors have far more to offer.

If you establish a relationship with a lender by financing a property, and everything goes smoothly, there’s no reason that you can’t qualify for another loan in the future. In fact, building a relationship with a mortgage lender can be a massive asset for your portfolio.

You might be able to finance many properties with one lender since they know and trust based on previous deals completed.

On top of that, when you work with a mortgage lender, you might be able to use the projected income of a rental property to qualify for the mortgage. Lenders will often use 75% of the projected rental income as part of your monthly income, which increases the chances of acquiring a mortgage.

Plus, mortgage lenders offer a wide range of products that go beyond conventional mortgages. Consider these different loans for your next investment property.

FHA Loans

Looking for investment property loans with low down payment requirements? For many aspiring investors, the FHA loan can be a powerful tool.

FHA mortgage loans allow you to put as little as 3.5% down. Plus, they generally come with lower interest rates, as they are backed by the federal government.

While these are geared towards first-time homebuyers, they can be used for rental properties as well. But you’ll need to use the home as your primary residence for at least a year before renting it out.

With far less money required upfront, this might be one of the best ways for young or new investors to start building their portfolio.

VA Loans

Veterans who meet eligibility requirements have access to one of the best home loan programs available; VA home loans. For those looking to begin investing with a no-money-down investment property loan, this is the only way to do it.

On top of a zero-down payment requirement, VA loans don’t require private mortgage insurance. PMI is an additional expense required for most borrowers who put less than 20% down.

There are also limits in place for closing costs and other loan fees to ensure veterans are able to acquire a property as easily as possible. 

Again, VA loans are intended for home buyers, not investors. This means you’ll need to live in the property that you purchase.

However, you can purchase a property containing 2 to 4 units. You can live in one unit and rent out the others.

Working With the Best Mortgage Lender In Texas

If you have your heart set on the Dallas, Texas area for your next investment property, consider financing with Supreme Lending. We have been serving Texas homeowners and investors since 1999.

We put our customers first and do everything we can to help you obtain your dream home or your dream investment property. We use the latest innovative technology to ensure our customers receive the fastest loan service possible.

In fact, our goal is to get your loan closed in less than 20 days. And with many different loan programs available, we do our best to understand your situation and goals to ensure you get the perfect loan.

Are you looking for your first investment property, your 10th, or your 100th? Consider Supreme Lending for fast, easy, customer-oriented service.

Investment Properties Dallas, TX Area

When it comes to financing an investment property, you don’t have to spend months hacking together DIY funding strategies. Skip the hassle and work with a mortgage lender that understands investors. 

Mortgage lenders for investment properties will save you time and money so that you can focus on finding new deals, not finding funding. Whether you are looking for a conventional loan for investment properties or a different type of loan, Supreme Lending is here to help. 

Looking for investment properties in the Dallas, TX area? Contact us today to get started on acquiring your next deal.

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