Investor Property Loans

There are many benefits to investing in property, including the potential for income and appreciation. However, if you’re looking to purchase or refinance an investment property, it’s essential to work with a lender who understands your goals and can offer loan products that meet your needs.

At GoNoCost Mortgage, we work with numerous banks, lenders, and portfolio investors who offer various investor property loans in Raleigh. We can help you find the right loan for your situation and make sure you get the best possible terms.

Benefits of Investing in Property

Investing in property can offer several potential benefits, including:

Income Potential: Rental income from an investment property can help offset ownership costs, including mortgage payments, taxes, and other expenses. Rental income may exceed these costs in some cases, providing a positive cash flow.
Appreciation: Over time, well-maintained properties may appreciate, providing the potential for long-term capital gains.
Diversification: Adding an investment property to your portfolio can help diversify your assets and reduce your overall risk.
Tax Benefits: In some cases, you may be able to deduct mortgage interest, property taxes, and other expenses on your investment property from your taxable income.

Types of Investment Property Loans

Several different types of loans are available for investors looking to purchase or refinance an investment property. The type of loan you choose will depend on several factors, including the property’s value, your goals for the property, and your financial situation. Some common types of investment property loans include:

Conventional Mortgage: A conventional mortgage is a traditional home loan not backed by the government. These loans are available for primary residences and investment properties and usually require a down payment of 20% or more.
FHA Loan: The Federal Housing Administration insures mortgages with FHA loans. These loans are available for both primary residences and investment properties, although they usually need a lower down payment than traditional mortgages (as low as 3.5 percent ).
VA Loan: A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. These loans are available to qualified veterans, active-duty service members, and spouses. VA loans can be used for primary residences and investment properties, but they typically require no down payment.
Portfolio Loan: A portfolio loan is a type of loan offered by some lenders. These loans are not backed by the government and may have more flexible terms than conventional loans, but they typically require a higher down payment (25% or more).

How to Qualify for an Investment Property Loan

To qualify for an investment property loan, you will need to meet specific requirements set by the lender. These requirements can vary from lender to lender, but they generally include:

Credit Score: Most lenders require you to have a good credit score to qualify for an investment property loan. A good credit score is typically defined as 700 or higher.
Income: Lenders will also consider your income when determining whether or not you qualify for a loan. In general, you will need to have a regular source of income to be eligible for an investment property loan.
Asset Value: Lenders will also consider the value of your assets when determining whether or not you qualify for a loan. You will need to have a significant amount of equity in your investment property to be eligible for a loan.