Real estate can be an outstanding way to build income and assets alongside your cash investments in the stock or bond markets.
To purchase an investment property a conventional loan is typically the financing vehicle used if you don’t have sufficient cash on hand to cover the full purchase price. Using financing also allows you to leverage your cash to purchase more property or keep funds in investment accounts.
Single-family homes purchased as investment properties require larger down payments than homes used as primary residences or second homes. A 15% down payment (or 85% loan-to-value) is required for a one-unit property. For a 2-4 unit investment property purchase, a 25% down payment is required for an LTV of 75 percent. As with all conventional loans, mortgage insurance is required if you choose to put less than 20% down.
Some loan programs will even allow you to qualify using the rental income on the property to offset your debt-to-income ratios and the mortgage payment.
To learn more about loans to enhance your real estate portfolio, call (208) 388-0500 or click the Apply Now button below.
